Bitcoin and ether rally on ETF optimism, sparking hope of a ‘crypto spring’

Welcome back to Distributed Ledger. This is Frances Yue, reporter at MarketWatch.


had another leg up this week, as Thursday marked the start of an eight-day window for the Securities and Exchange Commission to “theoretically issue approval orders” for pending spot bitcoin ETF applications.


also rose, as BlackRock appeared to have taken the first steps toward an ether ETF, with the website for Delaware’s Division of Corporations showing that an iShares Ethereum Trust was registered Thursday.

I caught up with a few industry participants to see what it means.

Find me on Twitter at @FrancesYue_ to share any thoughts on crypto or this newsletter.

The ETF hope

Crypto industry participants are expecting a spot bitcoin ETF to be approved soon, and an ether ETF to potentially follow.

Once greenlighted, an ether ETF could further increase the institutional adoption of digital assets, noted Diogo Mónica, co-founder and president of Anchorage Digital.

“A spot Ethereum ETF would have a similar impact as a Bitcoin counterpart, providing a regulated and accessible wrapper for institutions and consumers to participate in the ETH ecosystem,” Mónica said in emailed comments.

“But Ethereum adds an extra layer of intrigue as a proof-of-stake asset, which means underlying ETH could also be staked for additional rewards,” he added. “If approved, a spot Ethereum ETF would drive institutional demand for safe, secure, and regulated staking.”

Meanwhile, as bitcoin and ether prices rise, some smaller coinsalso saw their prices increased, pointing to a potential crypto spring, according to Leo Mizuhara, founder and chief executive at Hashnote.

“I think one of the usual patterns we see in these markets is that oftentimes a rally will begin with bitcoin and ether being more of the blue chip tokens, and then we’ll see a lot of the alt coins rally after it,” said Mizuhara.


rose 8% over the past seven days, and Solana

added about 11% over the same period, according to CoinDesk data.

Bitcoin’s tight supply

Bitcoin supply is currently tight compared with historical levels, a bullish sign for the cryptocurrency, according to analysts at Glassnode.

Many supply metrics regarding “coin inactivity” were reaching multiyear, and even record highs, the analysts noted.

For example, the percentage of circulating bitcoin supply that is held for longer than one year, is hovering at its record high, the analysts noted. 


Meanwhile, roughly 70% of bitcoin’s supply has remained untouched in over three months, according to a note from analysts at Reflexivity Research. 

Bitcoin has risen over 120% so far this year, but it still is down over 45% from its peak in November 2021, according to CoinDesk data.

While higher bitcoin prices usually encourage sales of the coin, “for the time being it doesn’t appear current price levels are enticing enough for the majority of Bitcoin’s holder base,” the analysts noted. 

Crypto in a snap

Bitcoin gained 4.6% in the past seven days and was trading at around $36,495 on Thursday, according to CoinDesk data. Ether rose 7.5% during the same period at around $2,058.


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