Cloud Hosting

The launch of spot Ether exchange-traded funds (ETFs) could see the cryptocurrency outperform Bitcoin in the weeks after they go live in the United States, say K33 Research analysts.

The ETFs, expected to launch as soon as July 8, are a golden egg for Ether (ETH)price action, while Bitcoin (BTC)is set to face sell pressure as $8.5 billion worth is returned to creditors of collapsed exchange Mt. Gox starting this week, K33 analysts Vetle Lunde and David Zimmerman said in a July 2 report.

Ether has underperformed relative to Bitcoin for over a year, with BTC posting market-leading gains bolstered by over $14 billion in flows to its spot ETFs in 2024.

Lunde and Zimmerman said its reasonable to expect the price of ETH to stumble immediately following the launch of the ETFs but noted that much like what later happened with Bitcoin inflows to the spot funds would likely bolster ETHs price.

ETFs are a solid catalyst for relative ETH strength as the summer progresses and flows accumulate, and I firmly view current ETH/BTC prices as a bargain for the patient trader, Lunde wrote.

The analysts said the market still stubbornly disagrees with their position, pointing to Ether futures trading at a relative discount to Bitcoin futures and the price of ETH relative to the price of Bitcoin trading at a rate of 1 ETH to 0.055 BTC.

Related: Bitcoin traders say BTCs trend change potential rests at $65K

For the past 12 months, ETHs value has been charting a steady decline compared to Bitcoin, falling to a yearly low of 0.045 on May 24.

The price of Ether relative to Bitcoin reversed quickly following the SECs sudden decision to approve Ether ETFs,which surprised analysts and saw ETH/BTC tick up to its present value of 0.055, according to TradingView data.

Despite this, Lunde and Zimmerman said Ether futures open interest was relentless, showing that many traders are taking on high amounts of leverage to bet on ETHs potential price action heading into the launch of the ETFs.

X Hall of Flame: Ethereums recent pullback could be a gift Dynamo DeFi

The rest is here:

Ethereum will outperform Bitcoin after ETF launch K33 Research - Cointelegraph