K33 Research predicts Ethereum to surpass Bitcoin following the introduction of ETF

The imminent launch of Ether exchange-traded funds (ETFs) in the United States could lead to the cryptocurrency surpassing Bitcoin in terms of performance, according to analysts at K33 Research. The ETFs, expected to debut on July 8, are seen as a major boost for Ether (ETH) price action, while Bitcoin (BTC) is anticipated to face selling pressure as $8.5 billion worth of it is returned to Mt. Gox creditors. K33 analysts Vetle Lunde and David Zimmerman stated in a report on July 2 that Ether has lagged behind Bitcoin for more than a year, with BTC benefiting from significant inflows to its spot ETFs in 2024, totaling over $14 billion. Lunde and Zimmerman predict that although the launch of the ETFs may initially cause ETH’s price to stumble, inflows to the spot funds will likely strengthen its value, similar to what occurred with Bitcoin. Lunde further emphasized that ETFs will serve as a catalyst for Ether’s relative strength throughout the summer, making the current ETH/BTC prices appealing to patient traders. Despite the analysts’ stance, the market still seems to disagree, as evidenced by Ether futures trading at a relative discount to Bitcoin futures and the ratio of 1 ETH to 0.055 BTC. ETH’s value has steadily declined compared to Bitcoin over the past year, hitting a yearly low of 0.045 on May 24. However, the SEC’s surprising approval of Ether ETFs caused a swift reversal in the price of Ether relative to Bitcoin, pushing it up to its current value of 0.055. Lunde and Zimmerman noted that Ether futures open interest remains high, indicating that many traders are leveraging heavily to speculate on ETH’s potential price movement leading up to the ETF launch.