Ethereum, the cryptocurrency ranked second by market capitalization, has been steadily growing in popularity and is potentially on track to surpass Bitcoin as the dominant player in the digital asset market. The introduction of Ethereum-based exchange-traded funds (ETFs) has sparked optimism among experts, suggesting that the price of ETH could experience a significant surge. In this piece, we explore a recent study conducted by K33 Learn that delves into the potential for Ethereum to outshine Bitcoin and the pivotal role that ETFs could play in this transition.
Ethereum’s Potential Rise with ETFs
Recent analysis by K33 Learn suggests that as global financial markets prepare to launch Ethereum-based exchange-traded funds (ETFs), Ethereum may outperform Bitcoin. This projection comes amidst concerns that Bitcoin could face downward pressure due to impending repayments to Mt. Gox creditors.
ETF Launch Initiating a New Phase for Ethereum
While Ethereum has lagged behind Bitcoin in performance over the past year, with Bitcoin surging by 95% compared to Ethereum’s 67%, the upcoming launch of Ethereum-based ETFs in the US could change this dynamic. Analysts at K33 Learn, Vetle Lunde, and David Zimmerman, believe that the introduction of these ETFs could be a game-changer for Ethereum’s valuation.
Despite potential initial price fluctuations post-launch, the analysts anticipate significant inflows into these funds, driving Ethereum’s price appreciation over time. Drawing parallels to the impact of Bitcoin ETFs, which attracted substantial capital inflows post-launch, they predict a similar trend for Ethereum. The analysts forecast inflows equivalent to 0.75% to 1% of Ethereum’s circulating supply within five months post-launch, setting the stage for substantial price appreciation.
Anticipated Timeline for Ethereum ETF Launch in the US
Despite the bullish outlook from analysts, the market sentiment appears cautious, with Ethereum futures trading at a discount relative to Bitcoin futures. Ethereum is currently trading around $3,312, reflecting a 3.3% decline over the past day in line with the broader crypto market downturn.
In the broader context, the crypto community is closely monitoring the developments around Bitcoin and Ethereum ETFs. Nate Geraci, president of The ETF Store, highlighted the amended S-1 filings for Bitcoin ETFs expected before July 8, with potential approvals by July 12, paving the way for a mid-July launch.
Simultaneously, Steve Kurz from Galaxy Digital expressed confidence in a Bloomberg interview that Ethereum ETFs could receive approval by July, citing a structured regulatory process drawing from past experiences with Bitcoin ETF applications.
the potential for Ethereum to outshine Bitcoin with the introduction of ETFs presents a significant opportunity for investors and marks a potential shift in the digital asset landscape. Stay tuned for further developments in the ETF space as Ethereum continues its upward trajectory.
