Ethereum’s value against Bitcoin has dropped to historical lows as market anticipation grows for an imminent launch of a spot exchange-traded fund in the U.S.

Data from Paris-based crypto intelligence platform Kaiko showed that the ETH/BTC ratio has steadily declined since the smart-contract-enabled blockchain transitioned into a proof-of-stake network in September 2022. During the last 24 hours, the metric dropped to 0.048, its lowest point since May 2021.

The ETH/BTC ratio is a crucial measure for gauging Ethereum’s performance in relation to Bitcoin. When this ratio rises, Ethereum gains strength or maintains its value better than Bitcoin, suggesting a market preference for ETH over BTC.

Conversely, a decrease in the ETH/BTC ratio indicates Ethereum’s weaker performance compared to Bitcoin, potentially signaling investor leanings toward the perceived safety of Bitcoin.

This ratio goes beyond mere price movements as it encapsulates shifts in investor confidence and market sentiment between these two prominent cryptocurrencies.

CyptoRanking’s data shows that BTC’s price has greatly outperformed Ethereum’s over the past year. During the period, the top cryptocurrency’s price rose by more than 170% to a 21-month high of more than $47,000, while ETH was able to post a modest gain of 74%.

BTC’s positive run could be attributed to the surrounding market optimism and demands for the potential approval of a spot ETF. Over the past several months, several asset managers, including BlackRock, VanEck, Grayscale, and others, have actively engaged the U.S. Securities and Exchange Commission (SEC) over the applications, fueling speculations that these products could begin trading as early as Jan. 11.

On the other hand, Ethereum’s lukewarm price performance came amid the launch of several futures-based ETFs for the digital asset last year. These ETFs barely made a ripple in the market as they saw tepid demand, forcing asset manager CoinShares to describe ETH as the “least loved altcoin” compared to rivals like Solana.