Cryptocurrency experts talk about the prospects of Bitcoin and Ethereum after the fall of the cryptocurrency market

Last week, the cryptocurrency market experienced a serious price collapse. It is noteworthy that Ethereum ETH $3,419.11 Bridged Ether (StarkGate) -0.25% Market capitalization $0.31 billion VOL. 24 hours $4.51 billion lost less in value compared to Bitcoin BTC $96,430.54 Bitcoin -1.33% Market capitalization $1.91 trillion VOL. 24 hours $6.23 billion . This surprised many analysts, as bitcoin is traditionally considered a more attractive crypto asset during market downturns.

The market flagship lost about 10.5% in value, while the ether fell by 8.3%. According to experts, the upcoming launch of exchange-traded ETH funds helped the main altcoin to hold on. Genesis representative Noel Acheson said: «It seems that the market is firmly convinced that ETH ETFs will be launched in October this year. This instrument will be convenient for investors primarily in terms of diversification.»

Such ETFs based on futures contracts are publicly traded securities that track the dynamics of derivatives on an underlying asset. Such funds will operate on the principle that underlies the ProShares Bitcoin Strategy. The tool was launched in October 2021 and is based on BTC futures. It is noteworthy that this fund has managed to raise about $ 2 billion since its launch.

According to the Wall Street Journal, 16 applications for the creation of ETH-ETFs are currently awaiting approval from US regulators. Experts assume that as funds are launched, network activity in the Ethereum ecosystem will increase. This, in turn, will favorably affect the market dynamics of the main altcoin.

According to analyst Біллі Маркус" href="https://noworries.media/biography/billi-markus/" data-bio-id="3704">MarcusThielen of Matrixport, the significant drop in bitcoin was mainly triggered by a «serious drop in investment demand.» This also negatively affected the overall liquidity of the market. Some experts believe that in the long run, Ethereum will still be able to displace bitcoin from its leading position.