Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper
Ethereum overtakes big four banks

The second-largest cryptocurrency has reached new heights, with its market capitalisation surpassing that of the big four banks combined.

Ethereum has a US$353 billion market cap, overtaking NAB, Westpac, ANZ and Commonwealth Bank. At the time of publishing, one Ether is worth US$3293.

By comparison, the cryptocurrency first traded at US$1.25 in 2015 and 12 months ago was US$243.

deVere Group chief executive Nigel Green predicts Ethereum to reach US$5000 over the next week.

"Ether is up more than 300% for the year so far, which is far greater than the 95% jump in the headline-grabbing Bitcoin," he said.

"Ether is one of the main beneficiaries in the wider explosion in the cryptocurrency market. The boom over recent months has been fuelled by soaring interest from major institutional investors and growing recognition that borderless digital currencies are the future of money."

The Ethereum price is also benefiting from the rise of non-fungible tokens which are typically bought and sold in Ether.

"Ethereum is already years ahead of Bitcoin in everything but price and fame. There's a real sense that 2021 is the year for Ether. Its time has come," Green said.

On the other hand, Bitcoin has a market cap of US$1.1 trillion and at the time of publishing one Bitcoin is worth US$55,853.

The news comes after investment banker Mark Carnegie launched MHC Digital Asset Fund, in partnership with blockchain expert Sergei Sergienko.

The fund will target 30% returns after fees, taking a multi-investment asymmetrical strategy aiming to maximise returns while safeguarding investors' principals.

Further to this, Mantis Capital has signed on a passive fund managed by Arrano Capital that tracks Bitcoin and is open to Australian investors.

Read more: EtherBitcoinEthereumNigel GreenArrano CapitaldeVere GroupMantis CapitalMark CarnegieMHC Digital Asset FundSergei Sergienko