After the Launch of Ethereum ETFs Will Ethereum Do Better Than Bitcoin?
A prediction by K33 Research suggests that Ether could outperform Bitcoin after the launch of ETFs.
The analysts of K33 Research, an up-to-date and well-informed portal on everything related to the cryptocurrency and digital asset sector, have made public a very interesting forecast. According to them, the launch - now imminent, scheduled for 8 July - of the exchange traded funds (ETF) based on Ether at the Wall Street Exchange could allow the cryptocurrency to overperform Bitcoin, at least in the first few weeks after the opening of transactions on this asset.
This is due to the fact that BTC will face strong selling pressure, due to the refunds after the closure of the Mt.Gox. The distribution of as much as $8.5 billion to the creditors of that platform, in fact, will end up definitely affecting the buying and selling of Bitcoin. On the other hand, the value of ETH could soar as it will become accessible to a large number of new investors.
The Analysis
It is with this scenario in mind, which is quite likely at least for the very first phase of Ether's presence on the financial market, that Vetle Lunde and David Zimmerman, veteran analysts working for K33, have predicted really attractive market dynamics for investors close to ETH.
It is over a year, as many cryptocurrency enthusiasts well know, that Ether performs considerably worse than Bitcoin. This is due, in part, to the introduction of BTC ETFs, which have brought a liquidity of over $14 billion to Bitcoin's infrastructure.
Now it could be Ether that intercepts these funds, if it attracts the same interest in the markets. Analysts are quite positive about this hypothesis, because traditional finance has been really paying attention to the dynamics of cryptocurrencies, both in New York and Hong Kong, after the ETFs on Bitcoin have also been launched in those latitudes.
ETFs to Consolidate the Rise of Ether
"ETFs are a solid catalyst for ETH's relative strength as the summer progresses and flows accumulate. We firmly believe that the current pricing of Ether and Bitcoin is a bargain for all patient traders. We maintain a bullish outlook on ETH in anticipation of net inflows, equivalent to 0.75-1% of Ether's circulating supply in the 5 months following the launch."
Governments are selling into the summer, while open interest in ETH is surging towards record levels with the ETF launch drawing near.https://t.co/PdJIFeikbT
Lunde and Zimmerman, therefore, also identified a window of time for the duration of which the ETH uptrend should persist, which is not a short one. In fact, if the launch of Ether ETFs really does happen next week, we would have until the end of the year to invest with margin.
The Market Dynamics
From K33 claim that, in its current state, the market still stubbornly disagrees with this forecast. When put up for sale, the futures on Ether will trade at a significant discount to those on Bitcoin. This is due to the fact that the current ETH/BTC ratio exchanges 1 Ether for 0.055 Bitcoin. The queen of crypto thus retains some strength against ETH, and consequently also against all others. Over the past 12 months, BTC has been increasingly strong, with Ether falling steadily against it. The annual low, on the relationship between the two cryptocurrencies, was reached on 24 May. On that day, 1 ETH traded at 0.045 BTC.
Who knows, maybe not much will really change following the launch of ETH-based ETFs. If the experts at K33 were right, we couldwitness a real revival of Ether and the Ethereum infrastructure, which does not seem to have quite the tailwind in recent days. It is in fact protagonist of a bearish trend (as is Bitcoin).
We at Spaziocrypto would be very happy to see a revival of Ether, perhaps in view of the upcoming events dedicated to ETH, such as ETHMilan, of which we are official media partner.
With nearly $4.6 billion in options contracts on Bitcoin (BTC) and Ethereum (ETH) expiring, the cryptocurrency market is bracing for increased volatility.
The analysts of K33 Research, an up-to-date and well-informed portal on everything related to the cryptocurrency and digital asset sector, have made public a very interesting forecast. According to them, the launch - now imminent, scheduled for 8 July - of the exchange traded funds (ETF) based on Ether at the Wall Street Exchange could allow the cryptocurrency to overperform Bitcoin, at least in the first few weeks after the opening of transactions on this asset.
This is due to the fact that BTC will face strong selling pressure, due to the refunds after the closure of the Mt.Gox. The distribution of as much as $8.5 billion to the creditors of that platform, in fact, will end up definitely affecting the buying and selling of Bitcoin. On the other hand, the value of ETH could soar as it will become accessible to a large number of new investors.
The Analysis
It is with this scenario in mind, which is quite likely at least for the very first phase of Ether's presence on the financial market, that Vetle Lunde and David Zimmerman, veteran analysts working for K33, have predicted really attractive market dynamics for investors close to ETH.
It is over a year, as many cryptocurrency enthusiasts well know, that Ether performs considerably worse than Bitcoin. This is due, in part, to the introduction of BTC ETFs, which have brought a liquidity of over $14 billion to Bitcoin's infrastructure.
Now it could be Ether that intercepts these funds, if it attracts the same interest in the markets. Analysts are quite positive about this hypothesis, because traditional finance has been really paying attention to the dynamics of cryptocurrencies, both in New York and Hong Kong, after the ETFs on Bitcoin have also been launched in those latitudes.
ETFs to Consolidate the Rise of Ether
Lunde and Zimmerman, therefore, also identified a window of time for the duration of which the ETH uptrend should persist, which is not a short one. In fact, if the launch of Ether ETFs really does happen next week, we would have until the end of the year to invest with margin.
The Market Dynamics
From K33 claim that, in its current state, the market still stubbornly disagrees with this forecast. When put up for sale, the futures on Ether will trade at a significant discount to those on Bitcoin. This is due to the fact that the current ETH/BTC ratio exchanges 1 Ether for 0.055 Bitcoin. The queen of crypto thus retains some strength against ETH, and consequently also against all others. Over the past 12 months, BTC has been increasingly strong, with Ether falling steadily against it. The annual low, on the relationship between the two cryptocurrencies, was reached on 24 May. On that day, 1 ETH traded at 0.045 BTC.
Who knows, maybe not much will really change following the launch of ETH-based ETFs. If the experts at K33 were right, we couldwitness a real revival of Ether and the Ethereum infrastructure, which does not seem to have quite the tailwind in recent days. It is in fact protagonist of a bearish trend (as is Bitcoin).
We at Spaziocrypto would be very happy to see a revival of Ether, perhaps in view of the upcoming events dedicated to ETH, such as ETHMilan, of which we are official media partner.
Read Next
Miners are Getting Better. What's Happening in the Cryptocurrency Mining Market?
The economics of bitcoin mining improved in the first half of November, JPMorgan calculated.
MicroStrategy Acquired Bitcoin Worth $4.6 Billion, How Many Coins Does It Hold?
The new batch of bitcoins became the largest ever purchase by Michael Saylor's company.
The Solana Cryptocurrency has Updated the Historical High of the Last Three Years. What is the Reason for the Growth?
The price of the SOL token rose by about 6 per cent from the previous all-time high.
How the Expiry of the $4 Billion Options will Affect BTC and ETH
With nearly $4.6 billion in options contracts on Bitcoin (BTC) and Ethereum (ETH) expiring, the cryptocurrency market is bracing for increased volatility.