• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Ethereum Expected to Gain Momentum Against Bitcoin, ETF Launch to Drive Institutional Demand

user avatar

by Giorgi Kostiuk

a year ago


Ethereum's Outlook Against Bitcoin

A recent report by K33 Research suggests that Ethereum is poised to stage a notable recovery against Bitcoin in the near future. Throughout this year, Ethereum has lagged behind Bitcoin in performance.

In a significant move, Ethereum is gearing up to introduce its first ETF listed in the US this July. This development is anticipated to spur a considerable uptick in institutional interest in ETH. K33 Research forecasts that the Ethereum ETFs will absorb between 0.75% to 1% of the total ETH in circulation within the initial five months of their market presence.

Despite the likelihood of a temporary 'sell the news' phenomenon following the ETF debut, reminiscent of the scenario witnessed with Bitcoin ETFs in January, K33 Research remains optimistic about Ethereum's 'favorable supply dynamics.' The report indicates that these dynamics will bestow 'relative strength' upon Ethereum in the ensuing months.

Vetle Lunde, the senior analyst at K33 Research, remarked, "ETFs serve as a robust catalyst for bolstering ETH's relative strength as we progress into the summer and witness accumulating flows. The current ETH/BTC price levels present an advantageous position for patient traders."

On a different front, holders of Bitcoin are grappling with challenges stemming from the defunct Bitcoin exchange Mt. Gox. A potential downside looms due to the impending distribution of 141,686 BTC (equivalent to $8.8 billion) from Gox. Analysts speculate that this long-awaited event, anticipated for over a decade, could trigger substantial selling pressure on Bitcoin.

K33 Research, in its latest market update, stated, "We anticipate a noticeable selling pressure on Bitcoin during a lackluster summer market, with the trading range widening akin to a mix of diverse ingredients until brighter prospects emerge."

The launch of the new Ethereum ETF has propelled CME ETH open interest to a record high, presently standing at 372,000 ETH (equivalent to $1.26 billion). Analysts interpret this heightened demand as indicative of an intention to engage in directional transactions concerning ETH ahead of the ETFs' commencement, although the precise nature of these transactions remains uncertain.

The report highlighted, "Soft funding rates underscore balanced expectations, with neither bullish nor bearish stances dominating, underscoring the market's ambiguity and the absence of consensus as Ethereum ETF launches draw near."

Please note this content does not constitute investment advice.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

New Opportunities in the Meme Cryptocurrency Market: Troller Cat Gaining Popularity

chest

Exploring the rise of Troller Cat amid shifts in meme cryptocurrencies and the current status of Shiba Inu and Pepe.

user avatarGiorgi Kostiuk

Bit Digital Makes $67.3 Million Ethereum Purchase, Strengthening Its Holdings

chest

Bit Digital invests $67.3 million in Ethereum, raising total holdings to nearly 120,306 coins.

user avatarGiorgi Kostiuk

Block Inc. Joins S&P 500, Replacing Hess Corp.

chest

Block Inc. will replace Hess Corp. in the S&P 500, potentially impacting Bitcoin's acceptance by institutional investors.

user avatarGiorgi Kostiuk

XRP Sets New Record Following Legislative Changes

chest

XRP hit $3.66, surpassing previous records due to increased investor interest and the expected signing of the GENIUS Act.

user avatarGiorgi Kostiuk

MEI Pharma and Litecoin: New $100 Million Treasury Strategy

chest

MEI Pharma has announced a $100 million treasury strategy with Litecoin, led by Litecoin creator Charlie Lee. Market reaction was volatile.

user avatarGiorgi Kostiuk

Merkel Urges for a Cohesive EU Response to US Tariffs

chest

Merkel calls for EU unity in response to US tariffs that may disrupt trade chains.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.