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

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As a researcher with a background in financial markets and a keen interest in cryptocurrencies, I find the upcoming launch of U.S.-based Ethereum spot exchange-traded funds (ETFs) an intriguing development. Based on my analysis of the situation, I believe that Ethereum could potentially outperform Bitcoin following the ETF launch due to the expected surge in capital inflows.

As a crypto investor eagerly anticipating the debut of U.S.-based spot Ethereum exchange-traded funds (ETFs) in the global financial markets, I’m optimistic about Ethereum’s potential for outperforming Bitcoin based on the latest insights from K33 Research’s analysis.

Amidst growing worries, Bitcoin could be influenced by impending debt repayments from the collapsed Mt. Gox exchange.

ETF Launch to Begin a New Era for Ethereum

As a crypto investor, I’ve noticed Ethereum underperforming Bitcoin over the past year, with Bitcoin surging 95% compared to Ethereum’s 67%. However, things might be looking up for Ethereum with the anticipated launch of spot Ethereum-backed exchange-traded funds (ETFs) in the US. This expected development could bring significant attention and investment to Ethereum, potentially leading to a price increase.

As an analyst at K33 Research, I and my colleague Vetle Lunde propose that the introduction of Ethereum’s spot Exchange-Traded Funds (ETFs) could significantly impact its market value.

As a crypto investor, I believe that despite an expected short-term price dip following the launch of these new Ethereum funds, the long-term outlook is positive. This is based on the assumption that substantial inflows will follow the launch, similar to what we observed with Bitcoin’s spot ETFs. These ETFs attracted massive investments post-launch, which in turn significantly boosted Bitcoin’s price over time.

As a crypto investor, I’m excited about the potential impact of Ethereum-based Exchange Traded Funds (ETFs). I believe these funds will attract substantial investment into Ethereum, much like how Bitcoin saw large inflows following the introduction of Bitcoin ETFs. This optimism is deeply rooted in my conviction that ETFs have the power to catalyze considerable capital flows into Ethereum.

As a researcher studying Ethereum’s market dynamics, I have come across estimates from analysts projecting that net inflows could reach between 0.75% and 1% of Ethereum’s total circulating supply within five months following its launch. This potential influx of new funds may serve as a catalyst for significant price growth in the cryptocurrency.

ETFs serve as a significant boost to Ethereum’s relative power during the summer months as investment inflows pile up. In my opinion, the present Ethereum-to-Bitcoin price levels offer an excellent buying opportunity for those with a long-term perspective.

When Will ETH Spot ETF Launch In The US?

As a researcher, I’ve noticed an intriguing discrepancy between the optimistic projections of analysts and the market’s hesitance regarding Ethereum. This is evident in the price difference between Ethereum and Bitcoin futures contracts. According to K33 Research, Ethereum futures are currently trading at a discount compared to their Bitcoin counterparts.

The price of Ethereum hovers around $3,312 currently, representing a 3.3% decrease over the last 24 hours, in tandem with the widespread downturn in the cryptocurrency sector.

In the wider perspective, there is great excitement within the cryptocurrency sector regarding the potential approval of Bitcoin and Ethereum Exchange-Traded Funds (ETFs). Notably, Nate Geraci, the president of The ETF Store, has mentioned that amended S-1 forms for Bitcoin ETFs need to be submitted before July 8. If approved, the finalization of these applications could occur as early as July 12, leading to a possible launch in mid-July.

Wen spot eth ETF?

BBG sticking w/ mid-July.

Amended S-1s due July 8th.

Potential final S-1s by July 12th.

Would theoretically mean launch week of July 15th.

via @emily_graffeo @olgakharif

— Nate Geraci (@NateGeraci) July 3, 2024

At the same time, Steve Kurz of Galaxy Digital voiced optimism during an interview with Bloomberg that Ethereum ETFs will be given the green light by regulators before July’s end. This belief is rooted in the well-trodden regulatory path paved by past Bitcoin ETF application experiences.

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2024-07-04 07:17