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Ethereum Set to Outshine Bitcoin Post Spot ETF Launch, Predicts Kaiko

Cryptodnes2024/07/16 05:19
By:Cryptodnes

A recent Kaiko report suggests that Ethereum (ETH) may surpass Bitcoin (BTC) in performance following the upcoming launch of spot Ethereum ETFs.

The report highlights the ETH/BTC Price Ratio, which measures the BTC required to buy one ETH . Currently, this ratio stands at 0.05, up from 0.045 before the SEC’s approval of the spot Ether ETFs, indicating a stronger performance for ETH relative to BTC.

The report also points to Ether’s 1% market depth as a potential trigger for a significant ETH price increase. Market depth reflects the liquidity in a market, with lower liquidity leading to higher volatility and higher liquidity stabilizing prices.

The Ethereum Exchange Reserve, which tracks the amount of Ether available on exchanges, is at multi-year lows. This scarcity, driven by institutional demand for the new Ethereum ETFs, could lead to a supply shock and substantially higher prices.

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SEC Gives Preliminary Nod to Ethereum ETFs, Trading Set to Start Soon

Anticipation for the Ethereum ETFs is high, with analysts predicting a launch in the near future. Bloomberg ETF analyst Eric Balchunas expects the launch by July 23, following the SEC’s request for amended S-1 forms by July 16. Institutional investor Tom Dunleavy forecasts $10 billion in inflows into Ethereum ETFs, at a rate of about $1 billion per month.

Ether’s regulatory status has been a contentious issue. The SEC recently halted its investigation into Ethereum, likely to avoid embarrassment, according to ConsenSys attorney Laura Brookover. Meanwhile, CFTC Chairman Rostin Behnam has asserted that ETH is a commodity under his agency’s jurisdiction.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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