The introduction of spot Ether exchange-traded funds (ETFs) in the United States has the potential to propel Ethereum (ETH) ahead of Bitcoin (BTC) in the cryptocurrency market. Analysts at K33 Research anticipate that ETH could outperform BTC once these ETFs become operational, expected around July 8. This move is considered highly favorable for ETH's price increase, while Bitcoin may face selling pressure due to the return of $8.5 billion to Mt. Gox creditors. K33 analysts, Vetle Lunde and David Zimmerman, highlighted in a recent report that ETH has lagged behind BTC for over a year, as BTC garnered significant gains from substantial inflows into Bitcoin-related products. According to Lunde and Zimmerman, ETH might face initial hurdles post ETF launch but could experience price surges similar to Bitcoin due to increased fund inflows.
In their assessment, Lunde emphasized that ETFs serve as a catalyst for ETH's relative strength, especially with the expected accumulation of funds over the summer months. They expressed optimism in the ETH/BTC prices, seeing it as a favorable opportunity for patient traders. The analysts maintain a bullish outlook on ETH, foreseeing net inflows equivalent to 0.75-1% of ETH's circulating supply in the months following the ETF launch.
Despite their positive stance, the market sentiment remains contrary to K33 Research's predictions, highlighted by Ether futures trading at a discount compared to Bitcoin futures. Currently, the exchange rate stands at 1 ETH to 0.055 BTC, showcasing a disparity in pricing trends between the two cryptocurrencies.
The value of ETH has been consistently declining against Bitcoin in the past year, hitting a low of 0.045 in May. The reversal in ETH/BTC pricing occurred swiftly following the SEC's unexpected approval of Ether ETFs, pushing the exchange rate to 0.055 as per TradingView data.
Lunde and Zimmerman noted a surge in Ether futures open interest leading up to the ETF launch, indicating a growing number of traders leveraging positions on ETH's prospective price movements.
The upcoming launch of ETH ETFs brings anticipation and speculations in the cryptocurrency market, setting the stage for potential market shifts and price fluctuations. Despite initial skepticism, the analysts at K33 Research remain optimistic about ETH's performance post-ETF launch and foresee a positive trajectory for Ethereum in the evolving landscape of digital assets.
