Bitcoin has made a phenomenal rally today smashing past $27,000 and is currently trading at its new all-time high around $27,650 levels. This is a massive Bitcoin price rally that doesn’t seem to be stopping anytime soon.
As Bitcoin is making massive gains, the altcoins have followed the queue. Ethereum (ETH) has moved past its crucial resistance and is up 4% above $650 levels. Many analysts believe that the ETH price rally is just getting started and 2021 could be a game-changing year for ETH.
Note that in terms of percentage returns, ETH has actually been an outperformer over BTC in 2020. The Ethereum (ETH) year-to-date returns stand at 400% while for BTC it is 300%. However, the fact is that BTC is already 30% up from its 2017 high whereas ETH is trading at more than 50% discount from its all-time high.
Many market analysts think 2021 could be the year for ETH. Just like Bitcoin, institutional interest in Ethereum is growing, although at a slower speed. The Grayscale Etherem Trust (ETHE) has seen major investments coming from institutions over the last few months. Well, this could further accelerate in the coming year!
The Grayscale Ethereum Trust (ETHE) now manages more than $1.7 billion in assets under management (AUM). Shares of ETHE (OTCMKTS: ETHE) are already up 700% year-to-date. Many analysts believe that once Bitcoin rally cools down, the money will start flowing into altcoins and ETH will be the first choice of investors.
Ether (ETH) Futures to Shoot Institutional Participation
Two weeks back, the Chicago Mercantile Exchange (CME Group) announced that it will start trading cash-settled Ether (ETH) Futures in February 2021. This will be a major trigger point pulling institutional money in ETH. Remember, CME was the first to start Bitcoin Futures in December 2017 triggering institutional participation in BTC.
It is very much likely that Ethereum will move past its all-time high of $1400 in 2021, meaning we are looking at nearly 100% price appreciation over the next year.
Apart from Ethereum (ETH), there are some other altcoins worth to watch out for. Litecoin (LTC) has emerged as a formidable player gaining 90% over the last month. Other players like Polkadot (DOT) and Chainlink (LINK) has made good advancements this year. Cardano (ADA) is making major improvements in its blockchain fundamentals.
However, the fate of Ripple’s XRP hangs in balance. The recent SEC lawsuit on Ripple could lead to an ugly war between the regulator and the blockchain startup. Investors are likely to wait on the sidelines until more clarity emerges in this matter.
The post Ethereum (ETH) Will Catch Up With Bitcoin (BTC) in 2021, CME Ether Futures Will be Game-Changer appeared first on Coingape.
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