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- K33 Research says that Ethereum spot ETFs will accrue up to 1% of the Ether supply, or $4 billion, pushing ETH to outperform Bitcoin, which faces selling pressure as Mt. Gox creditors get refunded.
- The firm says that ETH is trading at a steep discount against BTC but noted that Ether’s futures interest was soaring, indicating that traders are accruing the altcoin on high leverage.
K33 Research says Ethereum spot ETFs will change the game for the largest altcoin, making it a better investment than Bitcoin.
The Norwegian analytics company, formerly Arcane Research, says that most investors don’t realize Ether’s vast opportunity. This is reflected in its continued suppressed price, even as the green light for the launch of the ETH ETFs edges closer.
The company believes that once the ETFs launch, they will quickly rack up around 1% of all circulating Ethereum, equating to 1.2 million ETH, or $3.86 billion. It stated:
We maintain a bullish ETH outlook in anticipation of net inflows equivalent to 0.75-1% of ETH’s circulating supply in the five months following the launch.
🚀 #Ethereum (ETH) set to outshine #Bitcoin (BTC) post-ETF launch! 💹
K33 Research: 'We maintain a bullish ETH outlook in anticipation of net inflows equivalent to 0.75-1% of ETH’s circulating supply in the five months following the launch.'
Get ready for a bullish ride! 📈… pic.twitter.com/SB9fTggK9M
— Collin Brown (@CollinBrownXRP) July 3, 2024
Market experts have yet to come to a consensus on when the SEC will nod to the ETH ETFs. As Crypto News Flash reported, some, like ETF Store President Nate Geraci and Consensys’ Jimmy Ragosa, believe the approval will be in mid-July. Others believe it’s towards the end of the month, while a few others believe the SEC’s move to return the applications with its comments will lengthen the application process beyond July.
All analysts concur that these products will forever change Ethereum regardless of the timeline. American exchange and custodian says they will rack up $5 billion in the first six months, while K33 Research has a slightly more conservative estimate at $3.86 billion.
The firm said:
ETFs are a solid catalyst for relative ETH strength as the summer progresses and flows accumulate, and I firmly view current ETH/BTC prices as a bargain for the patient trader.
Can ETFs Push Ethereum Beyond $5,000?
Bitcoin ETFs launched in mid-January, and two months later, the top coin hit its all-time high just below $74,000, dragging the entire market with it. Ethereum soared to $4000 at the time.
Analysts believe that a similar effect will take place once ETH ETFs launch. However, according to K33, ETH might “stumble immediately following the launch of the ETFs” from the “sell the news” phenomenon. However, they expect it to pick up pace immediately and, by the end of the year, hit new heights.
K33 says it’s surprised that more traders aren’t accumulating ETH in anticipation of the coming surge. Year-to-date, the top altcoin has only gained 45%, around the same as BTC and lower than BNB and other lower-cap altcoins.
However, those in the derivatives market are catching on. Data shows that ETH futures open interest has been surging “relentlessly” as more traders take on higher leverage to buy ETH in anticipation of the price rise.
Ethereum trades at $3,313 at press time, dipping 3.5% in the past day.
