The long-awaited spot Bitcoin ETF approval in the US came on January 10th. However, following the approval, the largest cryptocurrency lost momentum, falling below the $40,000 threshold, disappointing investors. Now, attention has turned to Bitcoin’s block reward halving, with Ethereum (ETH) potentially benefiting the most from this event.
Cathie Wood Believes Ethereum Could Surpass Bitcoin in Performance
The block reward halving, which occurs approximately every four years, reduces the block reward in BTC by 50% for miners. This event, known as the block reward halving, effectively cuts the rate at which new BTCs enter circulation in half. This reduction in new BTCs entering the market can lead to a price increase for the largest cryptocurrency if demand remains constant or increases. A rise in Bitcoin is known to pave the way for an upward momentum in the rest of the cryptocurrency market, particularly Ethereum.
Cathie Wood, CEO of ARK Invest, known for her optimistic view on cryptocurrencies, especially Bitcoin and Ethereum, has recently been particularly interested in ETH. Wood highlights Ethereum’s growing significance in Decentralized Finance (DeFi) and NFTs, while emphasizing its capacity to meet the unmet demand for returns in financial markets.
ARK Invest’s “Big Ideas” presentation includes ambitious predictions for Bitcoin and Ethereum. In the latest presentation for 2023, three scenarios for Bitcoin were outlined, ranging from a bullish scenario of $258,000 to $1.48 million. For Ethereum, a market value exceeding $20 trillion by 2032 is forecasted, potentially leading to an ETH price above $166,000.
VanEck Also Expects a Rise in ETH
Leading investment management firm VanEck has presented a positive outlook for Ethereum’s future in its latest report. The report lists three potential scenarios for Ethereum’s price by 2030: bullish, bearish, and base case.
In the bullish case, Ethereum’s price is expected to rise to $51,006, a 31-fold increase from current prices. This optimistic scenario is based on Ethereum’s capacity to provide highly secure services and its use as a valuable store of assets.
As is known, the recent approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) marks an important milestone in the crypto industry. This decision is seen as a significant step towards broader financial acceptance of cryptocurrencies. The SEC will make its final decision on spot Ethereum ETF applications by May 23, 2024, and an approval could lead to a significant rally for ETH.