Ethereum Price: Analyst Predicts ETF To Boost ETH Performance Over BTC

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As a seasoned crypto investor, I’ve seen my fair share of market fluctuations and trends. The recent performance of Ethereum compared to Bitcoin has piqued my interest, especially with the imminent launch of an Ethereum ETF.

For the past two months, Ethereum has outpaced Bitcoin in terms of performance. Analysts predict that this trend will continue in the near future, primarily due to the upcoming listing of an Ethereum Exchange-Traded Fund (ETF). This development could potentially enhance Ethereum’s value relative to Bitcoin, particularly if there is a bearish divergence on Bitcoin’s weekly price chart.

Upcoming Ethereum ETF Expected to Drive Growth

A approved Ethereum ETF could significantly increase the value of ETH, potentially leading to increased investment in the Ethereum market. Analyst Michael Van de Pope anticipates that ETH will surpass Bitcoin’s performance due to this development. Furthermore, according to K33 research, these investments could amount to between 0.75% and 1% of Ethereum’s current supply over a five-month period.

Bitcoin’s supremacy in the cryptocurrency market may have reached its zenith. For the past two months, Ethereum has surpassed Bitcoin in terms of performance.

The approaching Ethereum ETF is expected to add more momentum, potentially leading to a bearish divergence on the weekly chart becoming confirmed.

— Michaël van de Poppe (@CryptoMichNL) July 13, 2024

An analyst is of the opinion that the present pricing of Ethereum in relation to Bitcoin represents a profitable opportunity for patient traders. The upcoming launch of an Ethereum ETF is anticipated to strengthen Ethereum’s position and drive up its value due to increased institutional investment.

The forthcoming Ethereum ETF could signify a shift in market trends, given its potential impact on Ethereum’s price. Despite investor anticipation of superior Ethereum returns following the ETF debut, Ether futures currently trade at lower values compared to Bitcoin futures.

Spot Ethereum ETF Approval: Market Awaits SEC Decision

The SEC in the United States has yet to give its blessing to Ethereum ETFs propositions, keeping issuers in a prolonged state of limbo. Bhushan Akolkar’s recent report indicates that the SEC’s silence on the matter this week has sparked unease among the issuers. In response, Nate Geraci, President of ETF Store, suggested that the SEC is dealing with the Ethereum ETF S-1 applications as cautiously as they handle 19b-4 forms.

Geraci hasn’t received any word from the SEC yet, but he’s optimistic that approval could be granted as early as next week.

As a researcher studying the world of Exchange-Traded Funds (ETFs), I’ve observed that there’s been an intriguing silence from the Securities and Exchange Commission (SEC) regarding Ethereum ETF applications. This lack of information has left issuers in a state of uncertainty, causing confusion about the reasons behind the delay.

Bitcoin Faces Potential Sell Pressure

If approximately $8.5 billion in Bitcoin is returned to the creditors of the failed crypto exchange, Mt. Gox, it could potentially lead to a significant increase in Bitcoin supply. This influx may result in a decrease in Bitcoin’s market price due to the increased availability of the cryptocurrency for sale.

Benajmin Cowen, an analyst, noted that Ethereum’s earlier expectation of surpassing Bitcoin’s performance has not materialized as planned.

As a crypto investor, I’ve noticed that Cowen’s analysis suggests that the transition from proof-of-work to proof-of-stake in Ethereum hasn’t significantly affected the ETH/BTC pair yet. However, I share his cautious perspective regarding the potential impact of an ETH spot ETF on sustaining a high ETH/Bitcoin valuation. Drawing from past market trends, it seems prudent to approach this development with skepticism and wait for clearer signs before making any major investment decisions.

Market Sentiment and Price Predictions

Ethereum’s value relative to Bitcoin in the market remains debated among investors. Historically, Bitcoin’s dominance has grown during the last quarters of years following a halving event. Therefore, it’s plausible that BTC could gain more prominence over ETH later this year, despite potential short-term pullbacks.

Expert: Kraken, the cryptocurrency exchange, expresses optimism towards Ethereum ETFs, believing they will significantly boost the market with estimated monthly inflows ranging from $750 million to $1 billion. (Thomas Perfumo’s statement)

The estimate is derived from analyzing Bitcoin ETFs’ substantial inflows, exceeding $2.5 billion.

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2024-07-14 01:08