Ethereum Dencun Upgrade: A Catalyst Amidst ETH ETF

The eagerly awaited Dencun upgrade for Ethereum has finally been scheduled for March 13th, drawing closer by the day.

Dencun upgrade is poised to enhance the performance of existing Layer 2 solutions.

Ethereum Upgrade: Boosting ETH Amid ETF Wave

This category is witnessing a burgeoning number of contenders as newcomers like Mode Network, Blast, Fraxtal, and others. Of particular note within the Dencun upgrade is EIP 4844, which introduces data blobs and lays the crucial groundwork for future sharding endeavors.

The convergence of Dencun with the current enthusiasm surrounding restaking, alongside the potential introduction of an Ethereum ETF, presents intriguing catalysts for Ethereum. The anticipation surrounding this event alone could yield significant impacts on the price of ETH and associated Layer 2 tokens.

According to a report by Bybit, institutions have ramped up their portfolio concentration in Bitcoin and Ether. There is a notable emphasis on the latter due to the anticipated Dencun upgrade. Conversely, retail users exhibit lower concentration in these assets, with a greater inclination towards altcoins, as highlighted in the report.

ETH, currently trading above $3200, has exhibited robust performance, boasting close to 35% rally year-to-date. This uptrend can be attributed to various factors, including

  • Deflationary supply following the shift to proof-of-stake
  • Dwindling levels of ETH held on exchanges, and
  • Heightened staking activity.
Blackrock’s Spot Bitcoin ETF Records $1 Billion in Trades in a Day

In a significant achievement for spot Bitcoin ETFs, BlackRock’s spot Bitcoin ETF has amassed over $1 billion in trades in a single day. It signals what a potential ETF approval can bring to ETH in terms of price action. Here are some key points to consider:

  • BlackRock, a global leader in asset management, introduced its spot Bitcoin ETF earlier this year. This provides investors with exposure to BTC without the need for direct ownership or custody.
  • The ETF’s capacity to attract such substantial trading volume within a single day signifies investors’ growing interest in Bitcoin.

Also, the iShares Bitcoin Trust has swiftly climbed to become the 11th largest ETF and ranks among the top 25 across all stocks, according to Eric Balchunas.

Coinbase, in a noteworthy development last week, shared a letter it sent to the SEC in support of Grayscale and its efforts to convert the Grayscale Ethereum Trust into an ETF. Coinbase’s argument centered on the premise that Ethereum is not a security, a stance historically upheld by securities regulators.

Analysts posit that optimism surrounding an ether spot ETF, potentially approved as early as May, could drive the cryptocurrency’s current rally.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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