Ethereum Set To Eclipse Bitcoin: ETFs May Take ETH To New Highs – K33 Research
As global financial markets prepare to launch US-based spot Ethereum exchange-traded funds (ETFs), Ethereum is set to outperform Bitcoin, according to a new analysis by K33 Research.
This comes amid concerns that Bitcoin may face downward pressure due to upcoming payments to the lenders of the Mt. Gox is gone.
ETF Launched to Start a New Era of Ethereum
Ethereum has lagged behind Bitcoin in performance over the past year, with the former growing 67% and the latter 95%, but that could change with the expected launch of Ethereum exchange-traded funds (ETFs) in the United States. , which is expected in the coming weeks.
Analysts Vetle Lunde and David Zimmerman from K33 Research suggest that the launch of these existing ETFs could be critical to Ethereum’s analysis.
Despite the possible initial dip after the launch, they predict that entry into these funds will boost the price of Ethereum in the long run, drawing parallels to the previous impact of Bitcoin’s spot ETFs, which attracted billions of dollars in inflows after the launch.
This hope is based on the belief that ETFs will create significant capital flows into Ethereum, mirroring the influx seen with Bitcoin.
Analysts project revenue of up to 0.75% to 1% of Ethereum circulating within five months after launch, potentially setting the stage for massive price appreciation. Commentators commented:
ETFs are a strong driver of relative ETH strength as the summer progresses and flows accumulate, and I strongly view current ETH/BTC prices as a boon for the patient trader.
When will the ETH Spot ETF be launched in the US?
Despite the bullish view of analysts, the market seems to be skeptical, as evidenced by Ethereum futures trading at a discount relative to Bitcoin futures, as highlighted in the K33 study.
Ethereum is trading around $3,312, which represents a 3.3% drop from the previous day and is in line with the overall decline in the crypto market.
In a broader context, the crypto industry is enthusiastic about Bitcoin and Ethereum ETFs. Nate Geraci, president of the ETF Store, emphasized that the amended S-1 forms for Bitcoin ETFs must begin before July 8, with approvals likely to be completed by July 12, paving the way for a mid-July launch.
Is there an ETF?
BBG sticks in mid/mid July.
The amended IS-1 is due by July 8.
S-1s are due July 12.
Apparently it would mean the launch week of July 15th.
with @emily_graffeo @olgakharif pic.twitter.com/NG8xhtCP21
— Nate Geraci (@NateGeraci) July 3, 2024
At the same time, Steve Kurz from Galaxy Digital expressed confidence in a Bloomberg interview that Ethereum ETFs will receive approval in mid-July, emphasizing a streamlined and standardized regulatory process drawing on experience with Bitcoin ETF applications.
The featured image was created with DALL-E, a Chart from TradingView
