Opt for Ether Over Bitcoin to Capitalize on ETF Momentum, Advises Cryptocurrency Research Firm

The likelihood of the first-ever ether futures ETF gaining approval in the United States is growing, and it might happen before the SEC's mid-October deadline.

The schedule for cryptocurrency-related ETFs in October, as reported by Bloomberg and analyzed by K33 Research.  

K33 Research recently conducted an analysis suggesting that Ethereum (ETH) is poised to outperform Bitcoin (BTC) in the near future. This is primarily attributed to the imminent approval of a futures-based ETF, expected to become a reality next month. The crypto research firm asserts that the market is currently underestimating the potential surge in demand that could result from the introduction of a spot Bitcoin ETF.

In a recent report, K33 Research has expressed a positive outlook for Ethereum's performance during September and October. This optimism is fueled by the anticipation surrounding the approval of an ETF. The U.S. Securities and Exchange Commission (SEC) has set a final deadline for the decision on the first-ever Ethereum ETF, and the chances of approval are considered high.

Vetle Lunde, a senior analyst at K33, drew parallels with Bitcoin's historical performance. He pointed out that Bitcoin experienced a remarkable 60% surge in the three weeks leading up to the launch of its initial futures-based ETF two years ago. Lunde emphasized that the odds appear to favor Ethereum in the current context, describing it as a "strong relative buy" when compared to Bitcoin. He highlighted that the ETH/BTC trading pair is currently near its lowest point within a 2.5-year range, indicating substantial potential for relative gains.

Impact of spot bitcoin ETF is under-appreciated

Furthermore, Lunde emphasized that the market may not fully grasp the potential impact of a spot Bitcoin ETF. Despite the considerable excitement surrounding ETFs, particularly after BlackRock's application for a spot Bitcoin product, the SEC's decision-making process has been characterized by uncertainty. Even though Grayscale recently achieved a legal victory over the SEC regarding the conversion of Grayscale Bitcoin Trust (GBTC) into an ETF, the boost to Bitcoin's price was short-lived. The SEC's subsequent decision to delay determinations on spot Bitcoin ETF applications from BlackRock and other firms further added to market uncertainty.

Historically, September has proven to be a challenging month for Bitcoin's price, with negative monthly returns observed each year since 2016. Some cryptocurrency experts even anticipate that Bitcoin could drop to as low as $23,000 by early October. Nevertheless, Lunde believes that the current price levels, hovering around $25,720, represent an appealing opportunity for investors with a longer-term investment horizon. He strongly advises that "this is undoubtedly a buyer's market, and it would be unwise not to aggressively accumulate BTC at these levels."