Ethereum Surges Far More Than Bitcoin

55% increase in a month… ETFs also popular

Ethereum has soared by more than 50% in the past month. During the same period, Bitcoin's rise was limited to around 15%. Growing expectations about Ethereum’s potential gains have emerged as the U.S. moves forward with the full implementation of the 'Genius Act', a stablecoin regulatory law.

According to Upbit, a domestic cryptocurrency exchange, Ethereum was trading at around ₩5.1 million at one point in the morning on the 22nd. Over the past month, the cumulative rate of increase has reached 55%. In the global market, the price surpassed $3,800, challenging its all-time high of $4,666 set in November 2021. Compared to Bitcoin, which is traded at about ₩160 million and climbed 15.6% during this period, Ethereum’s rate of increase is more pronounced.

The reason for the inflow of investments into Ethereum is that expectations have risen following the passage of the Genius Act in the United States, legally recognizing stablecoins and shining a spotlight on Ethereum. The Genius Act imposes strict regulations on non-U.S. stablecoin issuers, such as Tether. As a result, forecasts suggest that USD Coin (USDC) from Circle, a U.S. company, will benefit. USDC is the most widely circulated stablecoin on the Ethereum blockchain. BoA stated in a report, "Ethereum is expected to become an attractive asset for investors seeking to expand their presence in the emerging stablecoin market."

Funds are also flowing into spot Ethereum ETFs. In just one week this month, $2.18 billion (around ₩3 trillion) poured into spot Ethereum ETFs.

Journalist: Mihyun Cho mwise@hankyung.com