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Home Cryptocurrency Ethereum Surpasses Bitcoin: ETF Could Push ETH to New Heights — K33 Research

Ethereum Surpasses Bitcoin: ETF Could Push ETH to New Heights — K33 Research

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Dall·e 2024 07 03 17.11.54 Create A Dramatic Image Showing Ethereum Eth And Bitcoin Btc In A Race With Eth Clearly Outpacing Btc. Represent Eth As A Sleek Futuristic Car O.jpg

As global financial markets prepare for the launch of a U.S.-based spot Ethereum exchange-traded fund (ETF), Ethereum could outperform Bitcoin, according to a new study. analysis By K33 Research.

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

ETF Launch Begins New Era for Ethereum

Ethereum has lagged behind Bitcoin in performance over the past year, with Ethereum surging 67% compared to Bitcoin’s 95% surge, but that may be about to change with the expected launch of an Ethereum spot exchange-traded fund (ETF) in the U.S. within the next few weeks.

K33 Research analysts Vetul Lunde and David Zimmerman suggest that the introduction of these spot ETFs could be crucial to Ethereum’s valuation.

While an initial dip will likely occur following launch, we expect inflows into these funds will drive Ethereum prices higher over time, similar to the previous impact of Bitcoin spot ETFs, which attracted billions of dollars in inflows after launch.

This optimism is rooted in the belief that the ETF will drive large capital inflows into Ethereum, mirroring the inflows seen in Bitcoin.

Analysts predict that there could be net inflows equivalent to 0.75% to 1% of Ethereum’s circulating supply within five months of launch, which could spark a significant price increase.

ETFs are a powerful catalyst for relative ETH strength as the summer progresses and flows accumulate, and I believe the current ETH/BTC price represents a bargain for patient traders.

When will the ETH Spot ETF launch in the US?

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

Ethereum is trading around $3,312, down 3.3% over the past day, tracking the broader decline in the cryptocurrency market.

More broadly, the cryptocurrency industry is keen on Bitcoin and Ethereum ETFs, with ETF Store president Nate Geraci stressing that an amendment to the Bitcoin ETF’s S-1 form needs to be filed by July 8 and approval could be completed by July 12, paving the way for a mid-July launch.

At the same time, Galaxy Digital’s Steve Kurtz told Bloomberg interview The Ethereum ETF is expected to be approved sometime in July, highlighting a structured and familiar regulatory process based on the experience of the Bitcoin ETF application.

Featured image created by DALL-E, charts taken from TradingView

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