Market intelligence firm Glassnode has identified a key reason why Ethereum (ETH) has been trailing behind Bitcoin (BTC). According to Glassnode’s analysis, Ethereum has not experienced the same influx of new buyers as Bitcoin in the current market cycle, which has propelled Bitcoin to new all-time highs.

Glassnode suggests that the approval of spot Bitcoin exchange-traded funds (ETFs) played a significant role in attracting short-term holders who purchased BTC in the last 155 days. Prior to Bitcoin’s all-time high on March 14th, there was a noticeable increase in speculative activity. This resulted in capital accumulation among short-term holders, with the USD wealth held within coins moved within the last six months approaching $240 billion, close to ATHs. However, this trend has not been mirrored for ETH, which has yet to surpass its 2021 ATH.

Glassnode compares the STH-Realized Cap of Bitcoin and Ethereum and highlights the stark difference between the two. While Bitcoin’s STH-Realized Cap is nearly on par with the peak of the previous bull run, Ethereum’s STH-Realized Cap has barely risen from its lows. This suggests a lackluster inflow of new capital for Ethereum. The underperformance of ETH relative to BTC can be attributed, in part, to the attention and accessibility brought about by spot Bitcoin ETFs.

The Realized Cap metric, which records the price at which each coin moved, is used to assess the profitability of holders. Glassnode mentions that if the U.S. Securities and Exchange Commission (SEC) approves spot Ethereum ETF applications later this month, Ethereum could potentially experience a significant capital inflow. The market is eagerly awaiting the SEC’s decision on a suite of ETH ETFs expected in May.

Currently, Bitcoin is trading at $61,454, down over 2.6% in the last 24 hours, while Ethereum is trading at $2,970, down over 2.7% for the day.

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