Ether (ETH) Underperforms Bitcoin (BTC) by 44% Since The Merge, Despite Spot ETF Approvals

Data from CoinMarketCap shows ETH is currently trading at US$2,311 (AU$3,456), a 1.47% increase in 24 hours, but an 11.10% decrease in the last 30 days.

Crypto markets consolidated on Monday as the world’s largest cryptocurrency, Bitcoin (BTC), remained above US$42,000 (AU$62,780).

Data from CoinMarketCap shows BTC is currently trading at US$42,233 (AU$63,180), a 0.08% decrease in 24 hours, but a 6.33% increase in the last 30 days.

Meanwhile, the crypto market cap is sitting at US$2.28 trillion (AU$3.41 trillion), a 0.83% decrease in the last day, indicating a consolidation.

What’s Driving BTC’s Performance Today?

Bitcoin’s performance today comes as the US Food and Drug Administration (FDA) granted marketing approval for渤健(纳斯达克股票代码:渤健)’s experimental Alzheimer’s drug, making it the first new treatment for the disease approved in the country in nearly two decades.

This approval follows a contentious debate over the drug’s effectiveness and a congressional investigation into渤健’s handling of the clinical trial data.

Despite the approval, some experts and patient advocates remain skeptical of the drug’s benefits, and it is expected to face limited use initially due to the FDA’s decision to restrict its use to patients with mild cognitive impairment or mild dementia.

Bitcoin’s performance also comes as the US Securities and Exchange Commission (SEC) is reportedly preparing to sue Paxos Trust Co over its Binance USD (BUSD) stablecoin, which could have major implications for the crypto industry.

According to the Wall Street Journal, the SEC has informed Paxos that it plans to allege that BUSD is an unregistered security.

The move comes after the SEC’s recent crackdown on cryptocurrencies and other digital assets, which has seen the agency file several lawsuits against companies and executives.

If the SEC were to succeed in classifying BUSD as a security, it would have a significant impact on the stablecoin and the crypto industry more broadly.

Bitcoin funds have faced eight consecutive days of outflows, totaling over US$700 million (AU$1,046M). Overall, major withdrawals took place last week—US$287.8M million (AU$429M) on Tuesday, US$37 million (AU$55.3M) on Wednesday, US$211 million (AU$315.5M) on Thursday, and US$170 million (AU$254.3M) on Friday.

Fidelity’s FBTC fund was hit the hardest, leading losses on three of the four days. Researcher Jim Bianco stated that spot BTC ETFs have basically become a “small tourist tool and on-chain is returning to Tradfi”.

Eric Balchunas, Senior analyst at Bloomberg, had a differing opinion.

Bitcoin ETFs have failed lol https://t.co/Ik4tpF2xdx pic.twitter.com/Y5HFSFl2Mq

Meanwhile, Ethereum funds are also facing outflows, with the largest fund, Grayscale Ethereum Trust (ETHE), seeing outflows.

ETHE’s tracking stock, ticker GETH, has fallen by 96% since its April 2021 peak, as the asset manager continues to face difficulties in converting its Grayscale Bitcoin Trust (GBTC) into a spot ETF.

Data shows most of these funds are practically dead regarding price movement.

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