Ethereum Set to Eclipse Bitcoin: ETFs Could Catapult ETH to New Heights — K33 Research

Share This Post

As the global financial markets prepare to launch U.S.-based spot Ethereum exchange-traded funds (ETFs), Ethereum is positioned to potentially outperform Bitcoin, according to a new analysis by K33 Research.

This comes amid concerns that Bitcoin might face downward pressure due to upcoming repayments to creditors of the defunct Mt. Gox exchange.

ETF Launch to Begin a New Era for Ethereum

Ethereum has lagged behind Bitcoin in performance over the last year, with the former surging 67% while the latter by 95%, but that might be about to change with the anticipated launch of Ethereum spot exchange-traded funds (ETFs) in the United States, expected in the coming weeks.

Analysts Vetle Lunde and David Zimmerman from K33 Research suggest that introducing these spot ETFs could be pivotal for Ethereum’s valuation.

Despite a likely initial dip post-launch, they forecast that inflows into these funds will propel Ethereum’s price over time, drawing a parallel to the earlier impact of Bitcoin’s spot ETFs, which attracted billions of dollars in inflow after launch.

This optimism is rooted in the belief that ETFs will catalyze significant capital flows into Ethereum, mirroring the influx seen with Bitcoin.

The analysts project net inflows amounting to 0.75% to 1% of Ethereum’s circulating supply within five months post-launch, potentially setting the stage for substantial price appreciation. The analysts noted:

ETFs are a solid catalyst for relative ETH strength as the summer progresses and flows accumulate, and I firmly view current ETH/BTC prices as a bargain for the patient trader.

When Will ETH Spot ETF Launch In The US?

Despite the analysts’ bullish outlook, the market appears skeptical, as evidenced by Ethereum futures trading at a discount relative to Bitcoin futures, as highlighted in the K33 Research.

Ethereum is trading at around $3,312, reflecting a 3.3% drop over the past day and conceding with the ubiquitous decline in the crypto market.

Ethereum (ETH) price chart on TradingView.com

In the broader context, the crypto industry is enthusiastic about Bitcoin and Ethereum ETFs. Nate Geraci, president of The ETF Store, highlighted that amended S-1 forms for Bitcoin ETFs are due before July 8, with approvals potentially finalized by July 12, paving the way for a mid-July launch.

Concurrently, Steve Kurz from Galaxy Digital expressed confidence in a Bloomberg interview that Ethereum ETFs would receive approval within July, underscoring the structured and familiar regulatory process drawing from experiences with Bitcoin ETF applications.

Featured image created with DALL-E, Chart from TradingView

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Crypto Trading Bots Can Now Be Developed in Hours With SoftMine’s AI Software Dev Tool

This content is provided by a sponsor Crypto is a world of cycles – From the market peaks and troughs, to the shifts in investor tastes, we truly reside in a cyclical environment Each and every

How to Buy JetBolt ($JBOLT) – The Updated Detailed Guide

The post How to Buy JetBolt ($JBOLT) – The Updated Detailed Guide appeared first on Coinpedia Fintech News Looking for the next game-changer in crypto The rising altcoin star JetBolt ($JBOLT)

3 Reasons FXGuys Is the Next Big Crypto To Outshine Solana and TRON (TRX)

The post 3 Reasons FXGuys Is the Next Big Crypto To Outshine Solana and TRON (TRX) appeared first on Coinpedia Fintech News The next big crypto to outshine giants like Solana (SOL) and TRON (TRX) has

Steak ‘n Shake Teases Bitcoin Payments Again

On March 7, fast food chain Steak ‘n Shake posted a question on X asking, “Should Steak ‘n Shake accept bitcoin” The post received a slew of responses from many well-known

Crypto Millionaire Who Grew His Portfolio 17000% with Dogecoin and Floki Inu Names 5 Undervalued Coins Set to Pump In 2025

The post Crypto Millionaire Who Grew His Portfolio 17000% with Dogecoin and Floki Inu Names 5 Undervalued Coins Set to Pump In 2025 appeared first on Coinpedia Fintech News Spotting the next major

Crypto Market Falls 28% – Here’s Why Smart Money Is Buying the Dip

The post Crypto Market Falls 28% – Here’s Why Smart Money Is Buying the Dip appeared first on Coinpedia Fintech News The digital asset landscape has experienced a notable 28% contraction from