Ether's Potential Surge Amid ETF Expectations: K33 Research Insights

K33 Research predicts Ether (ETH) will outperform Bitcoin (BTC) in the short term due to forthcoming developments in the ETF space.
The SEC’s potential approval of the first futures-based Ether ETF is seen as a catalyst for Ether’s uptick.

Ether (ETH) is poised to surpass Bitcoin (BTC) in the short term, according to K33 Research, a leading crypto market analytics firm. This bold projection hinges on developments in the exchange-traded fund (ETF) space, particularly the pending decision by the U.S. Securities and Exchange Commission (SEC) regarding the first futures-based Ether ETF. K33 Research anticipates a favorable outcome from the SEC, based on historical precedents.

K33’s senior analyst, Vetle Lunde, backs this projection with solid reasoning. Looking back at Bitcoin’s history, he notes that in the three weeks leading up to the launch of Bitcoin’s inaugural futures-based ETF, the cryptocurrency surged by a remarkable 60%. Drawing from this historical example, Lunde suggests that Ether is well-positioned for a significant uptick in performance. Notably, the ETH/BTC trading pair currently rests near a 2.5-year low, indicating considerable potential for an upward swing.

Market Underestimates Bitcoin ETF Impact

While Bitcoin has dominated the ETF narrative, with notable filings from major players like BlackRock and Fidelity, the SEC has been cautious in granting approvals, even in the wake of Grayscale’s recent legal victory. This cautious approach has tempered market sentiment, causing Bitcoin prices to hover near six-month lows.

Vetle Lunde highlights an interesting perspective—the market may be undervaluing the potential repercussions of a spot Bitcoin ETF approval. Such approval could serve as a catalyst, ushering in substantial capital inflows and robust buying pressure for Bitcoin. Conversely, a rejection would likely maintain the existing market status.

Despite the historical trend of Bitcoin showing negative returns in September since 2016, Lunde believes that the current market conditions, with Bitcoin priced at $25,720 at the time of this report, offer an opportune moment for long-term investors to accumulate crypto assets judiciously. These conditions underscore the dynamic nature of the crypto market and the significance of regulatory decisions in shaping its future.