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The introduction of spot Ether exchange-traded funds (ETFs) in the United States might lead to Ethereum outshining Bitcoin in the subsequent weeks, according to a report by analysts at K33 Research.
Anticipated to debut around July 8, these ETFs represent a significant boon for Ethereum’s valuation. Meanwhile, Bitcoin might experience downward pressure as $8.5 billion in Bitcoin is scheduled to be redistributed to the creditors of the defunct Mt. Gox exchange this week, suggest K33 analysts Vetle Lunde and David Zimmerman in their report dated July 2.
Over the past year, Ethereum has lagged behind Bitcoin, which has seen substantial inflows of over $14 billion into its spot ETFs in 2024, leading the market in gains.
Lunde and Zimmerman anticipate that Ethereum’s price might dip shortly after the ETFs are introduced. However, they also expect Ethereum to follow a trajectory similar to Bitcoin’s, where the initial dip was followed by a strong rally fueled by significant capital inflows into the spot ETFs.
According to Lunde, “As the summer unfolds and these funds accumulate, ETFs will likely act as a strong catalyst for Ethereum’s relative strength. Viewing the current ETH/BTC price levels, I believe they present a substantial opportunity for those willing to wait.”
The analysts continue to uphold a positive outlook for Ethereum, expecting net inflows to reach between 0.75% and 1% of Ethereum’s circulating supply in the first five months post-launch.
Despite their optimistic forecast, market consensus seems to resist this view, highlighted by the trading patterns of Ether futures at a discount relative to Bitcoin futures, and the trading rate of 1 ETH at 0.055 BTC.
Ethereum’s valuation compared to Bitcoin has been on a steady decline over the last year, hitting a low of 0.045 on May 24. However, the trend reversed sharply following the unexpected approval of Ether ETFs by the SEC, boosting the ETH/BTC ratio to its current rate of 0.055, as per TradingView figures.
Despite the promising outlook, Lunde and Zimmerman note that the open interest in Ether futures remains robust, indicating that many traders are leveraging heavily to speculate on Ethereum’s price movements as the ETFs approach launch.
