New explanations for the leading altcoin Ethereum, which has recently gained momentum with the ETF approval, attracted attention. The relatively lackluster performance of nine new Ethereum futures exchange-traded funds (ETFs) has prompted analysts at K33 Research to call a “comeback” for Bitcoin. Here are the details…
K33 analysts warn about leading altcoin ETH
In a market report dated Oct. 3, analysts Anders Helseth and Vetle Lunde wrote “in ETH,” with initial trading volume for Ether futures ETFs accounting for just 0.2% of what the ProShares Bitcoin Strategy ETF (BITO) collected on its first trading day in October 2021. “It’s time to put the brakes on and get back to BTC,” he said. While analysts noted that no one expected initial trading volume in Ether futures ETFs to “come close” to that of Bitcoin futures ETFs launched in the midst of a raging bull market, the underwhelming first-day numbers missed expectations “by a strong margin.”
This lack of institutional appetite for Ether ETFs caused Lunde to backtrack on his previous advice to increase ETH allocation to make the most of the ETF craze. “The ETH futures ETF launch provides an important lesson for traditional investors to evaluate the impact of easier access to crypto investments,” Lunde said. “Increased corporate access will only create buying pressure if there is significant unfulfilled demand,” he wrote. However, “This is not the case for ETH right now.” says.
Bitcoin needs a significant catalyst
In the “more sideways ahead” section of the report, Lunde explained that the vast majority of the crypto market lacks meaningful short-term price catalysts and will likely continue on its sideways trajectory for the foreseeable future. According to Lunde, this landscape is only really favorable for Bitcoin, which has a potential spot for ETF approval early next year, and the halving event currently on track for mid-April. Lunde said:
For now, the gravity in crypto remains with BTC, and a promising event horizon going forward still supports aggressive accumulation.
Ben Laidler, global markets strategist at eToro, charted a similar path for crypto assets, albeit a bit more bearish. In his comments, Laidler pointed to current macro trends as a potential downside trigger for the prices of underlying crypto assets like Bitcoin. “The Fed and oil prices have been consistently strong macro influencers on the crypto market over the past few years,” Laidler said. “In the final phase of the current rate hike cycle, the market is looking for more good news to continue, but with oil prices rising again, this could have a cooling effect on sentiment,” he said.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.