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The cryptocurrency space has become a rather intriguing one to follow, particularly over the past week. For investors looking at the impressive moves made by Ethereum (ETH 2.70%), Ethereum Classic (ETC 3.29%) and Lido Staked Ether (CRYPTO:STETH), one might surmise that everything is sunshine and rainbows. After all, as of 3:30 p.m. ET, these three cryptos surged 16.3%, 47.3%, and 16.7%, respectively, over the past week.

However, it's also the case that Bitcoin (BTC 1.06%) is actually trading exactly flat this week over the same time frame. After surging more than 10% to a multiyear high of more than $48,500 this week, Bitcoin has since given up all its weekly gains, trading back to the $43,800 level at the time of writing.

This move follows the highly anticipated approval of spot Bitcoin ETFs, which has completely changed the investing landscape in the crypto sector, probably for good. Interestingly, Ethereum and its related tokens are seeing impressive surges, suggesting these cryptos may have ultimately been the better way to play this event.

Let's dive into why.

It's usually a good rule of thumb to wait a few days to assess how the enthusiasm around a specific catalyst for any asset plays out. In this case, it appears most of the buying activity for Bitcoin took place prior to, and around, its ETF approvals. Since then, a "sell the news" narrative has grown, suggesting perhaps the hype around these approvals may have already been priced into Bitcoin heading into this key catalyst.

However, the approval of 11 spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) has sent ripple waves through the market. For Ethereum, the world's second-largest cryptocurrency (and one that regulators have also shown a favorable stance toward in the past), the potential for spot Ethereum ETF approvals has shot higher following this news. Investors hoping for a similar rally heading into future spot Ethereum ETF approvals may be simply looking to get ahead of this trade.

For Ethereum Classic (the proof-of-work fork of Ethereum) and Lido Staked Ether (staked Ethereum on Lido's liquid-staking network that can be redeemed 1 to 1 with Ethereum), a rising tide tends to lift all boats. What's good for Ethereum is generally good for these tokens and will continue to drive outsized interest in these higher-volatility Ethereum alternatives.

If you asked me heading into this week whether Bitcoin or Ethereum and its related tokens would have a better week, I probably would have said Bitcoin. Most of the momentum in this sector was firmly behind the gold standard in this space, and a surge in capital (which could be as much as $100 billion) into Bitcoin should, in theory, lead to massive support for the world's largest cryptocurrency. These fundamentals remain in play. However, it's becoming clearer that much of the anticipation around these approvals had been priced in prior to the announcement.

Given how fast the crypto world moves, Bitcoin ETF approvals are now old news. Investors appear to be clearly focused on the next token with the biggest potential catalyst out there, and that's Ethereum right now.

Read more:

Why Ethereum, Ethereum Classic, and Lido Staked Ether All Popped This Week - The Motley Fool