Ethereum
Analyst Predicts ETF Will Improve ETH Performance Against BTC
Over the past two months, Ethereum has outperformed Bitcoin, with analysts expecting a surge in the coming days due to the launch of an Ethereum ETF. This should strengthen ETH against BTC, especially in the event of a bearish divergence on the BTC weekly chart.
Upcoming Ethereum ETF Expected to Drive Growth
The approval of a Ethereum The ETF is expected to provide a major boost to ETH, which could trigger more capital investment into the market. According to analyst Michael Van de Pope, ETH would continue to outperform Bitcoin’s trend because of this. K33’s research also reveals that these inflows could constitute around 0.75% to 1% of Ethereum’s circulating supply over five months.
The analyst believes that the current ETH/BTC prices are good for patient traders. The launch of the ETF is expected to consolidate ETH’s position and increase its price as institutional investors join the market.
However, the ETF launch is an event that may mark the change in trend in the markets when it comes to Ethereum. The market has Ether futures at a lower price than Bitcoin futures, even though investors are expecting ETH to perform better after the ETF launch.
Ethereum Spot ETF Approval: Market Awaits SEC Decision
The United States Securities and Exchange Commission (SEC) has still not granted approval to spot Ethereum ETFsleaving issuers to wait an extended period. As Bhushan Akolkar reported, the SEC’s lack of comment this week on the Ethereum spot ETF has raised concerns among issuers. In response, ETF Store President Nate Geraci said the SEC is treating Ethereum spot ETF S-1 filings with the same confidentiality as Form 19b-4s.
Although Geraci has not received any communication from the SEC, he believes approval could come soon, perhaps within the next week.
Eric Balchunas, ETF strategist at Bloomberg, noted that there was no information from the SEC on Ethereum ETFs, which left issuers confused about the blockade. Larger market participants and Ethereum whales bought ETH in anticipation of the ETF approval, hoping for a surge in ETH price after the approval process.
Bitcoin Faces Potential Selling Pressure
Bitcoin is likely to face selling pressure if $8.5 billion worth of BTC is returned to creditors of the major failed cryptocurrency exchange Mt. Gox. Such an influx of Bitcoin into the market could put downward pressure on the Bitcoin price.
However, Benjamin Cowen, an analyst, pointed out that Ethereum’s previous narrative that Bitcoin would outperform has not played out as expected.
According to Cowen, events such as the transition from proof-of-work to proof-of-stake have not had a major impact on the ETH/BTC pair. He remains skeptical about the impact of the ETH spot ETF on maintaining a high ETH/Bitcoin valuation, drawing parallels with previous market trends.
Market Sentiment and Price Forecast
The market continues to be somewhat polarized on the valuation of Ethereum compared to Bitcoin. Looking at historical data, Bitcoin dominance tends to increase in the fourth quarter of halving years, implying that BTC dominance could increase later this year, even if there are temporary retracements.
Cryptocurrency Exchange Kraken said he is optimistic that Ethereum ETFs could bring a lot of money into the market. According to Kraken’s Thomas Perfumo, the market is expecting Ethereum ETF products to see monthly inflows of between $750 million and $1 billion.
This projection is based on comparison with the Bitcoin ETF inflow rate, which has been over $2.5 billion.
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