Author: Vince Quill; CoinTelegraph; Translated by: Baishui, Golden Finance
Ethereum could outperform Bitcoin following the launch of the much-anticipated Ethereum exchange-traded fund (ETF) in the United States, according to a new report from Kaiko.
The report highlights the Ethereum to Bitcoin price ratio, which measures the amount of BTC required to purchase 1 ETH. The higher the metric, the higher the price of Ethereum relative to Bitcoin, and vice versa.
The ratio currently stands at 0.05, compared to 0.045 before the U.S. Securities and Exchange Commission (SEC) approved a spot Ethereum ETF.
ETH to BTC price ratio. Source: Kaiko
The report also pointed out that Ethereum's 1% market depth could be a potential catalyst for the upcoming ETH bull run. Market depth measures market liquidity. The lower the liquidity of an asset, the greater the volatility, while the higher the liquidity, the more stable the market price will be in the face of large orders.
The low market depth is supported by Ethereum exchange reserves, which track the amount of Ethereum available for purchase on exchanges and are currently at multi-year lows, potentially signaling an impending supply shock driven by institutional demand to fill their Ethereum ETFs, potentially leading to a significant price increase.
Ethereum ETF is coming soon
All eyes are on the launch of a spot Ethereum ETF, which analysts say could happen soon. Eric Balchunas, senior ETF analyst at Bloomberg, continues to predict a July launch for the product. According to Balchunas, the SEC requires applicants to submit an amended S-1 form by July 16 in order to launch the product by July 23.
Institutional investor Tom Dunleavy recently noted that he believes the Ethereum ETF will see inflows of $10 billion at a rate of about $1 billion per month.
Regulatory controversy
Whether Ethereum is a commodity or a security has been hotly debated in regulatory circles. In June, the SEC dropped its investigation into the smart contract protocol, presumably to avoid embarrassment, according to Conensys attorney Laura Brookover.
Recently, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam argued that ETH is a commodity and falls under the agency’s jurisdiction.
