Ethereum just touched $200, a increase of 25% in the week. Here are the reasons it’s leading the charge of the altcoins.
1. Taking Bitcoin’s lead
There’s no doubt that all cryptocurrency altcoins are correlated with Bitcoin. Bitcoin alone accounts for 57% of the entire market capitalisation, and is the primary on-ramp to crypto. Where Bitcoin leads, the others follow. And Bitcoin is surging since it passed the “Golden Cross” on the 22nd April.
2. Fidelity Investments research suggests institutional money is coming
Fidelity, which hosts a digital assets division, ran a survey to find out how pensions, family offices, hedge funds, endowments and foundations feel about owning cryptocurrencies.
The survey found that 47 percent of institutional investors said digital assets are worth investing in, and the same percentage said they appreciate crypto for being innovative.
Just as important is the fact that 46 percent of respondents like the low correlation between cryptocurrencies and other asset classes. And if you want a hedge, you wouldn’t place all your money in Bitcoin. Ethereum and other top altcoins by market cap are definitely of interest for institutional investors.
3. Facebook’s Project Libra
Recent reports say Facebook is actively recruiting allies to support its under-construction cryptocurrency-based payments system. Internally dubbed ‘Project Libra’, the blockchain-powered initiative will reportedly feature a U.S. dollar-collateralised stablecoin. Visa and Mastercard are rumoured to be supporting the initiative and the Wall Street Journal even suggests Facebook might reward users with fractions of the stablecoin in exchange for viewing advertisements or even by simply using the social platform. Maybe they will take JP Morgan’s lead and fork Ethereum for their stablecoin?
Backing up this news was a softening of rules regarding crypto ads on Facebook. It doesn’t get much more mainstream than Facebook, if the company gets behind crypto in a big way it could open the door to retail investors again.
4. New Cryptocurrency-based ETF Filed with US SEC
The US Securities and Exchange Commission (SEC) received another application for a cryptocurrency-based exchange traded fund (ETF). Submitted on May 9, 2019, the latest crypto ETF application was prepared by Crescent Crypto Index Services.
The SEC postponed its decision on whether to approve ETF applications filed by both VanEck/SolidX and Bitwise Asset Management – there’s a definite sense that they cannot postpone these applications indefinitely, and ETFs open the door to institutional investment.
5. The Consensus Bull Run
It didn’t happen last year, but the biggest crypto conference of the year – Consensus New York – begins in a few days and it brings a feel-good factor as the movers and shakers get together to debate the issues of the day.