In bitcoin's shadow, another cryptocurrency, Ether, stages its own rally

NEW YORK: Bitcoin has captured the limelight in recent weeks as it surged to a new record high, yet another major cryptocurrency, Ether, has been enjoying its own meteoric rise.

Launched in 2015, Ether, also known as Ethereum, is by far the second-largest digital currency in terms of total value, now estimated at over US$460 billion.

Along with other cryptocurrencies including Solana and Dogecoin, it benefited from the regulatory approval in the United States of a new bitcoin investment product, the exchange traded fund - or ETF - in mid-January, said James Butterfill of the investment company CoinShares.

These ETFs allow investors to profit from any change to the price of cryptocurrencies without having to buy them directly, while also letting them sell at any time.

The launch of crypto ETFs has led to an influx of new money, sending bitcoin to a fresh record on Friday of US$70,085.

Bitcoin's rise has been well-documented, but Ether's has been even more impressive, surging almost 72 per cent year to date in comparison to bitcoin's 61 per cent rise.

This strong performance is largely due to "expectations that an Ethereum ETF could be approved in the United States", according to Dessislava Aubert of research firm Kaiko.

Several asset management companies have applied for authorisation from the US financial markets regulator, the Securities and Exchange Commission (SEC), to market these Ether investment products.

The SEC must rule on the first such applications, from VanEck and Ark 21Shares, by May 23 at the latest.

"Ethereum has started to wake up as investors are anticipating a potential approval," Michael van de Poppe of MN Trading told AFP, adding that "people are rotating from Bitcoin to Ethereum as a potential investment