Ethereum vs Bitcoin: Much More Upside for ETH Ahead, Analyst Says

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As an analyst with extensive experience in tracking the liquidity dynamics of cryptocurrency-based investment products, I find myself drawn to Leon Waidmann’s recent analysis on Grayscale’s ETH and BTC-based products. Having followed the market closely since the launch of Bitcoin spot ETFs in January 2024, it’s intriguing to see Ethereum demonstrating better potential in terms of outflows over time.

According to Leon Waidmann, who serves as Head of Research at Onchain Foundation, he has been observing the liquidity patterns in both Bitcoin and Ethereum investment products offered by Grayscale ever since their transformation into spot Exchange Traded Funds (ETFs). So far, it appears that Ethereum (ETH) may hold more promising prospects.

Grayscale outflows: ETH-based product looks better, analyst says

Over a period of 50 days, Ethereum (ETH) is showing better performance in terms of Exchange Traded Fund (ETF) withdrawals compared to Bitcoin (BTC), as stated by researcher Leon Waidmann. He has been monitoring Grayscale’s investment products ever since they were converted from Over-The-Counter (OTC) trusts into spot ETFs.

As an analyst, I’m observing a significant trend: Ethereum (ETH) is surpassing Bitcoin in terms of ETF outflows over time. Specifically, the number of days since the Grayscale Bitcoin Trust (GBTC) has had more assets under management than Ethereum’s equivalent is now lower for ETH. This suggests a very bullish outlook for Ethereum! 🚀 If this trend continues, we could be looking at even more upward momentum for ETH in the future.— Leon Waidmann | Onchain Insights🔍 (@LeonWaidmann) September 27, 2024

Essentially, the Ethereum-linked product is experiencing significantly less loss of liquidity than its Bitcoin counterpart. Consequently, Waidmann anticipates greater potential gains for the second digital currency should this trend persist.

On January 11, 2024, Bitcoin spot ETFs were launched in the U.S., followed by the debut of Ethereum spot ETF on July 23. Grayscale, a prominent asset manager and operator of the largest over-the-counter (OTC) traded crypto trusts, transformed its related products into exchange-traded funds (ETFs).

Previously reported by U.Today, Ethereum (ETH) has shown relatively weak performance compared to Bitcoin (BTC) over the past few years.

On September 15, 2024, for the first time in nearly four years, the exchange rate of ETH (Ethereum) to BTC (Bitcoin) fell below 0.04. Over the past three and a half years, the value of Ethereum has decreased by more than 55%, following the activation of the Merge upgrade that swapped proof of work with proof of stake.

Bitcoin ETFs inflow metrics positive for seven days in row

Over the past week, I’ve noticed a steady increase in investments flowing into Bitcoin Exchange Traded Funds (ETFs), reflecting a cautiously optimistic trend within the digital currency market.

According to information from CoinGlass, in the recent seven days, American Spot Bitcoin ETFs have collectively amassed more than $1.35 billion in assets under management (AUM). The latest withdrawal occurred on September 18th.

Yesterday saw a highly fruitful day for Bitcoin ETFs, marking the most prosperous day since mid-July, with approximately half a billion dollars invested. ARK Investments accounted for more than two hundred million dollars of that total sum.

Contrary to some indications, Ethereum (ETH) appears to be exhibiting a blend of positive and negative trends over the past week, with five days showing promising signs and two days displaying unfavorable ones. A total inflow of approximately $93.2 million has been observed across all publicly traded Ether Exchange Traded Funds (ETFs) on the spot market.

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2024-09-28 14:26