The price of Ethereum (ETH-X) continued its remarkable rally this week as demand for cryptocurrencies continued surging. The coin surged to a high of $2,260 on Monday, its highest point since May 2022. It has had a spectacular rally after bottoming at $881 in June last year. 

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Ethereum’s surge has also had an impact on the Grayscale Ethereum Trust (ETHE), which has over $6 billion in assets under management (AUM). The fund has moved from having a discount to Net Asset Value (NAV) to having a premium of about 2%. 

This performance is primarily because most investors believe that the SEC will also approve Ethereum ETFs. While the SEC is expected to approve a Bitcoin ETF, the challenge is that the agency views Ethereum as a financial security because of its staking features. As such, it might reject an ETH ETF just as it has done so for BTC several times in the past.

Ethereum and ETHE prices have jumped in line with the ongoing Bitcoin price surge. Bitcoin has rallied to over $40,000 as demand for the coin rises. Investors are waiting for the upcoming Bitcoin halving event and spot ETF approval. There is also growing optimism that the Federal Reserve will start cutting rates in the coming months.

Ethereum also has a dominant role in the blockchain industry even as competition from layer-1 networks like Avalanche and Solana rose. It is also competing with other layer-2 networks like Base, Optimism, Polygon, and Arbitrum.

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