Ether ETF is expected to gain ground against Bitcoin in the short term, according to K33 Research. This prediction is based on the potential approval of the first Ether ETF next month. The U.S. Securities and Exchange Commission (SEC) has set a final deadline for approving the Ether ETF in mid-October, and K33 believes that there is a high likelihood of approval.
Bitcoin’s Performance Before its First Futures-Based ETF
K33’s senior analyst, Vetle Lunde, pointed out that Bitcoin experienced a 60% increase in value in the three weeks leading up to the launch of its first futures-based ETF two years ago. Lunde suggests that Ether could follow a similar trajectory, making it a “strong relative buy” compared to Bitcoin. Ether is currently trading near 2.5-year range lows, which indicates significant room for relative upside.
Underestimation of Potential Buying Pressure for a Spot Bitcoin ETF
K33 also argues that the market is underestimating the potential buying pressure that a spot Bitcoin ETF could generate. While the SEC recently postponed decisions on the June spot product filings by BlackRock and other asset managers, K33 believes that the approval of a spot ETF could attract massive inflows, creating substantial buying pressure on Bitcoin. On the other hand, if the BTC spot ETFs are rejected, the situation remains unchanged.
September’s Impact on Bitcoin’s Price
Historically, September has been a challenging month for Bitcoin’s price, with negative monthly returns every year since 2016. Despite this trend, K33 believes that the current price levels offer a buying opportunity for investors with a longer time horizon. Lunde stated, “This is, by all accounts, a buyer’s market, and it’s reckless not to aggressively accumulate BTC at current levels.”
Implications of an Ether ETF Approval
If the Ether ETF is approved, it could lead to increased interest and investment in the cryptocurrency market. This would likely result in a surge in Ether’s price, as seen with Bitcoin in the weeks leading up to its first futures-based ETF launch. Additionally, the approval of an Ether ETF could pave the way for other cryptocurrency ETFs, further expanding the market and attracting more investors.
Investor Strategies Amid Ether ETF Speculation
While waiting for the SEC’s decision on the Ether ETF, investors should carefully consider their investment strategies. For those who believe in the potential of Ether and the broader cryptocurrency market, now may be an opportune time to invest, given the possibility of an upcoming approval and the historical performance of Bitcoin before its ETF launch.
However, it is crucial for investors to remain cautious and conduct thorough research before making any investment decisions. The cryptocurrency market is known for its volatility, and the outcome of the Ether ETF approval is still uncertain.
Conclusion
In conclusion, the potential approval of an Ether ETF next month could lead to significant gains for Ether against Bitcoin in the short term. The market may be underestimating the impact of a spot Bitcoin ETF, and current price levels present a buying opportunity for investors with a longer time horizon. As the SEC’s deadline for approving the first Ether ETF approaches, investors should carefully consider their strategies and weigh the potential risks and rewards of investing in the cryptocurrency market.
