Spot Ether ETF Launch Could Boost ETH Over Bitcoin, Say Analysts
Spot Ether (ETH) exchange-traded funds (ETFs) are set to launch in the United States on July 8, and analysts at K33 Research believe this could be a game-changer for the cryptocurrency market. According to analysts Vetle Lunde and David Zimmerman, the launch of ETH ETFs could see Ether outperforming Bitcoin in the weeks following their debut.
ETH has been trailing behind Bitcoin for over a year, but the analysts at K33 Research are optimistic about the potential for ETH to shine with the introduction of ETFs. They expect ETH to initially stumble after the launch but anticipate a strong rebound fueled by inflows to the funds.
Lunde and Zimmerman are bullish on ETH, predicting net inflows equivalent to 0.75-1% of ETH’s circulating supply in the five months following the ETF launch. Despite the market’s current skepticism, the analysts believe that ETH is undervalued compared to Bitcoin and see the ETFs as a catalyst for relative ETH strength.
The value of ETH relative to Bitcoin has been on a steady decline for the past year, hitting a low of 0.045 in May. However, the approval of ETH ETFs by the SEC has sparked a reversal in this trend, with ETH/BTC now trading at 0.055.
Traders are showing strong interest in ETH futures leading up to the ETF launch, with open interest spiking in anticipation of potential price action. Overall, the analysts at K33 Research are optimistic about ETH’s prospects and believe that the ETFs could be a game-changer for the cryptocurrency.
