Will ETFs become the focus of Ethereum's next narrative?Original | Daily Planet Daily, Author | LoopyYesterday, the crypto market underwent a drastic change. Stimulated by the positive news that the Bitcoin ETF has officially entered the approval window period, Bitcoin briefly broke the $38000 barrier

Will ETFs become the focus of Ethereum's next narrative?

Original | Daily Planet Daily, Author | Loopy

Yesterday, the crypto market underwent a drastic change. Stimulated by the positive news that the Bitcoin ETF has officially entered the approval window period, Bitcoin briefly broke the $38000 barrier. Then the market crashed, and Bitcoin quickly fell to $35500.

Among the drastic changes in the market, ETH is the currency that deserves our attention the most. According to documents disclosed by Bloomberg analysts, BlackRock is registering an Ethereum Trust in Delaware with the registered entity name ISHARESETHEREUMTRUST.

Stimulated by this positive trend, ETH became one of the best-performing mainstream currencies, rising by over 12% on the same day. With the rapid rise in prices and the trend towards policy openness, how far can ETH go?

ETH performs strongly and remains firm despite the flash crash

After several months of silence, ETH finally caught up with yesterday's rise in BTC last night, breaking through the $2000 and $2100 levels one after another, and did not fall in the flash crash of the market. It remained above $2100 this morning.

When we observe the trend of the ETH/BTC exchange rate, the ETH advantage is particularly prominent. On the small level chart, the ETH/BTC exchange rate has rapidly risen, with several major positive lines showing extraordinary upward momentum. At present, the exchange rate has risen by 12.1% from yesterday's low point. It is rare for mainstream currencies to achieve such strong growth based on the BTC standard. As follows:

If we take a broader perspective, we can see that the ETH/BTC exchange rate has bottomed out, but whether it can "stabilize" and continue to rise is still worth watching.

BlackRock enters Ethereum, making the track even more crowded

The 19b-4 table disclosed yesterday further demonstrates BlackRock's ambition towards the encryption market - never stopping at BTC.

The 19b-4 form is an application document from the SEC. Financial institutions can use this form to submit listing applications for certain securities, especially those related to exchange traded products such as exchange traded funds (ETFs). When a company wishes to list a new product on an exchange, it needs to submit this form. Through this program, the SEC will review the structure and operation of products to determine whether they comply with regulations and protect the interests of investors.

For example, in June this year, BlackRock submitted the Bitcoin ETF file shortly after iShares Bitcoin Trust issued a similar notice.

As the world's largest asset management company, since BlackRock has ambitions for BTC, it is natural for BlackRock to have expectations for ETH as the "two cakes".

The website of the Delaware Company Registry shows that BlackRock has registered an iShares Ethereum Trust with the registered entity name ISHARESETHEREUMTRUST. This morning, NASDAQ officially submitted BlackRock's proposed spot Ethereum ETF "iSharesEthereum Trust" application to the US SEC, which will use CoinbaseCustodyTrustCompany as the custodian and CMECFEther Dollar reference rate.

So far, participants including VanEck, ArkInvest, 21Shares, Invesco, Hasdex, and Grayscale have submitted seven applications to the US SEC.

It is worth noting that although BlackRock is not the first company to apply for a spot Ethereum ETF, the market places high hopes on BlackRock, the "victorious general" on the ETF battlefield, hoping that the Ethereum ETF it brings will be different.

Cryptography analyst Lark Davis revealed Blackrock's ambition: "Blackrock will acquire Bitcoin, Ethereum, and eventually Chainlink, Solana, and other ETFs. This cycle is a time of massive influx of institutional funds. This also means that this may be the last cycle, where crazy, life changing, and cross generational wealth can be obtained

Can this asset management giant with a scale of 9 trillion yuan lead ETH to a different fate?

How far can ETH go when "Two Cakes" replays the narrative of "Big Cakes"?

From a narrative perspective, the approval of Ethereum ETF will bring ETH into the view of mainstream institutions and bring more capital inflows. There is not much difference in the narrative of ETFs between BTC and ETH, and naturally there is no significant difference in the difficulties they face.

Previously, the SEC had repeatedly postponed the existing application for the proposed Bitcoin spot ETF. Every time the ETF approval window arrives, the market experiences a stir, and then with the delay of the SEC, the market returns to calm.

It will be a long process from applying for an ETF until it is finally approved. In the winding road, ETH may go through all the ETF events encountered by BTC again. The landing of this positive news is still a considerable distance away from us.

Although the ETF benefits are far from being realized, the negative news of Ethereum itself has been truly troubling the crypto community in recent times.

At present, Ethereum has been repeatedly questioned, including the excessive centralization of liquidity pools and criticism of Vitalik himself for being too authoritarian. The most serious accusation comes from the improper operation and bribery of SEC executives by the founder of Ethereum during the Ethereum ICO period.

Steven Nerayoff, a former consultant at Ethereum, commented, "It is obvious that Ethereum is an elephant in the room, even overshadowing the FTX case. Joe Lubin and VitalikButerin have always been frontlines for corrupt officials at the highest levels of federal agencies, such as Clayton (former SEC Chairman) and Gensler (SEC Chairman)

At present, the more anxious temporary events in the community are probably some trading operations with giant whales.

According to SpotOnChain monitoring, this afternoon, Sun Yuchen deposited 580 ETHs ($1.23 million) into Coin An and transferred 30 ETHs ($63700) to the new wallet. In addition, according to Scopescan monitoring, Vitalik.eth has also sent 50 ETHs ($106000) to Coinbase.

However, from the data on the chain, the Ethereum network has achieved substantial growth. Currently, the number of micro addresses holding less than 0.1ETH has exceeded 100000 wallets for the first time. The number of addresses holding 0.1-10ETH has also shown a significant upward trend.

As of the release of this article, ETH prices are still fluctuating around $2100. According to the OKX market of Ouyi, ETH24 has increased by as much as 12% in 24 hours.

This increase has allowed ETH to regain its dominant position in the short-term "flash crash" market, and people have once again turned their enthusiasm and attention to this mainstream currency. The market sentiment is high and the bull market atmosphere is strong, but how long can this enthusiasm last?