Recently, industry insider AP Abacus quoted sources from several Ethereum spot ETF issuers as claiming that there may be two rounds of S-1 document modifications, and the approval date will most likely fall in late July. As potential approval draws closer, traders are also beginning to bet on the price movement of an Ethereum ETF post-approval.

Analysts from the cryptocurrency research institution K33 Research believe that the Ethereum ETF will become a major driver of the price of Ethereum, and that Ethereum will outperform Bitcoin in the weeks after the ETF is listed in the United States.

According to Cointelegraph, K33 analysts Vetle Lunde and David Zimmerman said in the latest report that Ethereum will “drop immediately” after the launch of the ETF, but just like what happened with Bitcoin, as new funds flow in, Ethereum will The price of the coin will also rise accordingly.

On the other hand, $8.5 billion worth of Bitcoin will be returned to creditors of the collapsed exchange Mt. Gox starting this week. Coupled with the fact that the German and US governments have been selling confiscated Bitcoin, Bitcoin prices will be suppressed as a result. . Therefore, Ethereum will have the opportunity to outperform Bitcoin during this period.

“With summer approaching and funds accumulating, ETFs are a strong catalyst for ETH’s relative strength, and I strongly believe that current ETH/BTC prices are cheap for patient traders... We maintain our bullish ETH outlook and expect to see a significant increase in ETH price after launch Within 5 months, net inflows will reach 0.75-1% of the circulating supply of ETH.”

Additionally, Vetle Lunde and David Zimmerman open interest in Ethereum futures surged significantly following the SEC’s approval of the Ethereum ETF’s 19b-4 filing in May, suggesting that many traders were using significant leverage to bet on ETH ahead of the ETF’s launch. Potential price movement.

However, another explanation in the market is that the approval of the Ethereum ETF provides arbitrage opportunities for traders and hedge funds, so a large number of institutions are taking advantage of the negative premium of the Grayscale Ethereum Trust Fund (ETHE) relative to the market price of Ethereum. Carry out hedging arbitrage.

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