K33 Research Anticipates Ethereum Surge Against Bitcoin, ETF Launch to Trigger Institutional Interest
Cryptocurrency analysts at K33 Research have highlighted Ethereum’s potential to regain ground against Bitcoin throughout this month. Ethereum has notably lagged behind Bitcoin in performance since the year’s start.
In a significant move, Ethereum is set to debut its first US-listed ETF in July, a development expected to catalyze substantial institutional demand for ETH. K33 Research forecasts that these ETFs could absorb between 0.75% to 1% of the total circulating ETH within their initial five months on the market.
Despite concerns over a possible “sell the news” scenario immediately following the ETF launch, akin to events seen with Bitcoin ETFs in January, K33 Research remains optimistic about Ethereum’s robust supply dynamics, which it believes will provide relative strength in the coming months.
“ETFs serve as a pivotal catalyst for Ethereum’s relative strength as we progress through the summer and witness cumulative flows,” remarked Vetle Lunde, senior analyst at K33 Research. “The current ETH/BTC price levels are advantageous for patient traders.”
Conversely, Bitcoin faces impending challenges with the imminent release of 141,686 BTC ($8.8 billion) from Mt. Gox, an event expected to exert significant selling pressure. Analysts have long anticipated the repercussions of this long-awaited distribution.
K33 Research cautioned in a recent market update: “We anticipate pronounced selling pressure on Bitcoin in a quiet summer market, with volatility expected to widen until more favorable conditions arise.”
Meanwhile, the introduction of the Ethereum ETF has spurred record-high open interest in CME ETH futures, currently standing at 372,000 ETH ($1.26 billion). Analysts interpret this heightened demand as indicative of preparations for directional trading around ETH in anticipation of ETF launches, although market sentiment remains divided.
“The prevailing soft funding rates reflect balanced expectations, without a prevailing bullish or bearish bias,” the report noted, highlighting the uncertain market sentiment and lack of consensus as the ETH ETF debut nears.
*This article does not constitute investment advice.
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