Although Bitcoin and Ethereum have performed similarly recently, many are still betting on “swap positions,” i.e., ETH/USD outperforming Bitcoin in terms of market capitalization.
Currently, Bitcoin has a market capitalization of $810 billion, while Ethereum has a market capitalization of around $390 billion, just over 48% of the value of Bitcoin, so there is still a long way to go for Ethereum to outperform Bitcoin.
However, according to some predictions, this could happen as early as this year 2022. And that is indeed what Kevin Kelly, CEO of Benchmark Investments, predicted in an interview with Market Watch last weekend.
Ethereum Could Overtake Bitcoin This Year
In particular, Kelly noted that smart contract networks such as Ether offer investors more benefits than bitcoin, which is only a store of value.
“We fully believe that swaps can happen this year,” said the CEO of the ETF issuer.
“We believe that with the continued desire to digitize the world, Ethereum is the network that can do that,” Kelly said, noting that Ethereum fuels many areas of the crypto market such as the expansion of private block chains, non-fungible tokens (NFTs), and decentralized finance. (DeFi).
“Therefore, over the next three to five years, we believe that the growth of blockchain applications will be unprecedented, and Ether will have an important role to play in this area,” he explained.
The trend of ETFs into Ethereum could also be a strong bullish factor
Aside from the advantages that Ethereum has over Bitcoin, Kelly highlighted the fact that many ETFs that are investing in Ethereum could be a strong bullish factor for the second largest cryptocurrency in the market.
It is worth noting that last year the Securities and Exchange Commission (SEC) validated the first ETF investing in Bitcoin futures, and indicated that it would prefer to study the last batch of Bitcoin futures ETFs first before considering In cases similar to Ethereum.
However, Kelly does not rule out that this will happen this year in the most optimistic scenario, acknowledging that the most likely scenario is for Ethereum-based ETFs to start appearing in 2023.
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