๐ WILL ETHEREUM OUTPERFORM BITCOIN AFTER ETF LAUNCH?๐
Ethereumโs price could surge with the imminent launch of U.S.-based spot Ether ETFs, setting it up to outperform Bitcoin. Here's why this could be a game-changer for ETH:
1. ETF Launch: A "Golden Egg" for Ethereum ๐ฅ
๐ K33 Research analysts Vetle Lunde and David Zimmerman highlight that the upcoming launch of spot Ether ETFs, expected as soon as July 8, could significantly boost ETH's price. by attracting substantial inflows.
2. Bitcoin's Headwinds: Mt. Gox Repayments โ
๐ธ Bitcoin, on the other hand, faces potential sell pressure with $8.5 billion worth of BTC set to be returned to creditors of the defunct Mt. Gox exchange. This looming distribution could dampen Bitcoin's price performance in the near term.
3. Current ETH/BTC Valuation: A Bargain? ๐ค
๐ Ethereum has been underperforming relative to Bitcoin for over a year. BTCโs market-leading gains in 2024 have been driven by over $14 billion flowing into spot Bitcoin ETFs. However, ETH's relative value to BTC is seen as a bargain by the analysts, with ETH/BTC trading at a rate of 1 ETH to 0.055 BTC.
4. Anticipated ETF Inflows ๐
๐ The analysts foresee that spot Ether ETFs could bring net inflows equivalent to 0.75-1% of ETHโs circulating supply within five months post-launch. These inflows are expected to bolster ETHโs price, providing a strong catalyst for relative strength against Bitcoin as the summer progresses.
5. Market Sentiment and Trader Positioning ๐
๐ Despite the positive outlook, the market remains skeptical. Ether futures are trading at a relative discount to Bitcoin futures.
However, Lunde and Zimmerman point out that many traders are leveraging up on ETH, indicating high expectations for ETHโs price action ahead of the ETF launches.
Do you think $ETH will outperform $BTC ?
Why / why not?
Drop a comment below!