- Israel says conducting review after UN peacekeepers wounded in Lebanon
- 'Party atmosphere': Skygazers treated to another aurora show
- Djokovic 'overwhelmed' after 'greatest rival' Nadal's retirement
- Zelensky in Berlin says hopes war with Russia will end next year
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Djokovic proves staying power as progresses to Shanghai semi-finals
- Hurricane Milton leaves at least 16 dead as Florida cleans up
- Britain face 'ultimate challenge' in America's Cup duel with New Zealand
- Lebanon calls for 'immediate' ceasefire in Israel-Hezbollah war
- Nihon Hidankyo: Japan's A-bomb survivors awarded Nobel
- Thunberg leads pro-Palestinian, climate protest in Milan
- Boat captain rescued clinging to cooler in Gulf of Mexico after storm Milton
- Tears, warnings after Japan atomic survivors group win Nobel
- 'Unspeakable horror': the attacks on Hiroshima and Nagasaki
- Stock markets diverge before China weekend briefing
- Christian villagers 'trapped' in south Lebanon crossfire
- Sabalenka sets up Gauff showdown in Wuhan semis
- EU questions shopping app Temu over illegal products risk
- Kim Sei-young holds lead with late birdies at LPGA Shanghai
- Toulouse welcome Dupont 'boost' as Olympic star returns to Top 14
- Japanese atomic bomb survivor group Nihon Hidankyo wins Nobel Peace Prize
- Deadly Israeli strike on Beirut likely targeted Hezbollah security chief
- Bangladesh Islamist chief backs crimes against humanity trial for ex-PM
- Everest climber's remains believed found after 100 years
- 20 Pakistan coal miners shot dead in attack
- Clashes on South China Sea, Ukraine dominate Asia summit
- Han Kang's books sell out in South Korea after Nobel win
- Zelensky meets Pope, Scholz as whirlwind Europe tour ends
- Hello Hallyu: why is South Korean culture sweeping the globe?
- UK economy rebounds in August in boost to new govt
- Voice of Japan's beloved robot cat 'Doraemon' dies
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- 20 Pakistan coal miners shot dead in attack: police
- Blinken condemns China's 'increasingly dangerous' sea moves
- Toyota returns to Formula One as Haas partner
- EU chief says China must 'adapt its behaviour' to solve trade row
- Musk unveils robotaxi, pledges it 'before 2027'
- Lynx rally, stun Liberty in overtime in WNBA Finals opener
- Pogacar hunting 'perfect' season finale with Coppi's Il Lombardia record
- 'Soul of old Baghdad': city centre sees timid revival
- Kittle at the double as Niners hold off Seahawks
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Yankees advance in MLB playoffs as Guardians stay alive
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- Kamada says Japan can close in on World Cup place against Australia
- On US coast, wind power foes embrace 'Save the Whales' argument
RBGPF | -1.03% | 59.49 | $ | |
RYCEF | 0.58% | 6.92 | $ | |
CMSC | -0.14% | 24.555 | $ | |
NGG | 0.88% | 66.265 | $ | |
BTI | -0.04% | 35.095 | $ | |
RIO | 0.55% | 67.21 | $ | |
GSK | -1.03% | 38.811 | $ | |
AZN | 0.25% | 77.06 | $ | |
SCS | 2.48% | 12.92 | $ | |
CMSD | -0.28% | 24.7 | $ | |
RELX | 1.51% | 47.07 | $ | |
VOD | -0.78% | 9.665 | $ | |
BCC | 1.95% | 141.71 | $ | |
JRI | 0.08% | 13.23 | $ | |
BCE | 0.27% | 32.95 | $ | |
BP | -0.48% | 32.185 | $ |
In bitcoin's shadow, another cryptocurrency, Ether, stages its own rally
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 $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 $70,085.
Bitcoin's rise has been well-documented, but Ether's has been even more impressive, surging almost 72 percent year to date in comparison to bitcoin's 61 percent 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 authorization 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 opportunity."
- Bigger than bitcoin? -
Beyond the ETF effect, the digital currency dreamed up by Russian programmer Vitaly Buterin has several other cards up its sleeve.
For Simon Peters of cryptocurrency exchange eToro, Ethereum is also buoyed by the prospect of "Dencun," a major upgrade to the technology underlying this digital currency, scheduled for March 13.
This major change will improve transaction processing capacity and cut transaction costs, but also has the potential to unleash the growth of an ecosystem with multiple applications.
"Bitcoin’s primary use is as store of value, while Ethereum has much more potential use cases," Peters told AFP.
For example, it is the destination of choice for non-fungible tokens -- or NFTs -- the certificates of digital authenticity that caused such a stir three years ago.
The two cryptocurrencies are not in direct competition, according to van de Poppe from MN Trading, because Bitcoin is "hard money," while Ether "is basically an investment for the entire blockchain and smart contract ecosystem."
Ethereum has already successfully negotiated two major technical transformations in recent years, including the switch to a less energy-intensive system in September 2022.
James Butterfill said there is "increasing optimism" that a "Dencun" upgrade will "go without a hitch," which would reinforce the currency's credibility.
He added that Ether, by the very nature of its operation, offers the "added benefit" of interest generated by its holders.
The mechanism for creating this currency involves owners putting up existing Ether coins as collateral in a process known as "Proof of Stake," which differs from bitcoin's energy-intensive method involving highly complex calculations, known as "Proof of Work."
Ether investors who agree to put up some or all of their holdings receive a fee of a few percent a year, in addition to any potential capital gain if the currency appreciates in value.
The "Proof of Stake" process adopted in September 2022 has significantly increased the amount of Ether used as collateral, notes Simon Peters, currently at 21 percent compared with just 10 percent 18 months ago.
"There is less Ethereum in circulation," he said, adding: "If demand increases, given the squeeze in supply, then price should follow."
"I think that Ethereum is going to be outperforming Bitcoin," said Michael van de Poppe, adding the total market capitalization of Ethereum could end up exceeding that of bitcoin.
J.Williams--AMWN