$ETH can maybe outperform on price action in the short term. But long term, $BTC's likely to dominate.
Over the short term, #Ethereum does have a couple of things going for it right now.
First, the ETF structure itself. BlackRock's ETHB plans to stake roughly 70-95% of its $ETH holdings. SO investors get both price exposure and staking yield. That's something Bitcoin ETFs simply can't offer and should help with demand.
Second, ETF flows have historically triggered bursts of outperformance. In one rally last year, ETH-linked ETFs pumped ~36% in a month while Bitcoin ETFs only gained ~10%. So capital rotation can briefly favor ETH when institutional narratives shift.
So yes. It's plausible that outperforms Bitcoin in short bursts... if the ETF narrative catches fire.
But take a step back.
We've seen things like the "flippening" narrative running for nearly a decade now. And the long-term trend hasn't exactly been cooperating:
- ETH once reached ~80% of Bitcoin's market cap in 2017
- It got "close" again at ~50% in 2021
- It then slowly ratcheted down from that peak to ~11% before briefly trending up.
- Today it's trending back down and sitting around ~17-21%
These sorts of trends tell us something about what's likely to happen over the short and long term.
Right now, $ETH might be able to outperform Bitcoin. Just like it has in the past.
But with each "flippening" peak getting lower, and lower, it looks like it's only a matter of time until BTC$BTC dominates once more.