The introduction of exchange-traded funds (ETFs) for Ethereum could potentially propel the second largest cryptocurrency ahead of Bitcoin, according to some experts who are evaluating the current situation and strongly supporting this notion.
Market analysts at K33 Research platform are forecasting that Ethereum ETFs might enhance the token’s performance in comparison to Bitcoin. The question arises: Will ETFs serve as the catalyst for Ethereum to surpass Bitcoin?
The analysts are optimistic about the impact of Ethereum ETFs in the US market, anticipating a significant influence on the cryptocurrency’s performance. In their analysis, K33 Research indicates their belief that Ethereum could outperform Bitcoin in the weeks following the initiation of these ETF products.
Vetle Lunde and David Zimmerman, experts at the platform, underscored in their report the advantageous opportunity ETFs present for Ethereum’s price, especially at a time when Bitcoin could face selling pressure due to the anticipated return of US$8.5 billion from defunct Mt. Gox exchange creditors starting this week.
As governments prepare for summer selling, open interest in ETH is on the rise, approaching record levels with the imminent ETF launch.
In a recent tweet from K33 Research on July 2, 2024, the upcoming discussions would revolve around Ethereum ETF Approval and the remarkable 100% increase in Ethereum’s annual revenue compared to Bitcoin.
Regarding the Ethereum ETF Approval, the anticipated authorization timeline has encountered another delay. Initially expected to be finalized by July 2, the U.S. Securities and Exchange Commission (SEC) extended the deadline for revised documentation submissions for issuers until July 8th.
Eric Balchunas, a Senior ETF Analyst at Bloomberg, expressed disappointment on social media about the delay. He suggested that the process might resume shortly after July 8th.
Shifting focus to the surprising development in the cryptocurrency field, recent data suggests that Ethereum has outpaced Bitcoin in fee income in 2023 by an impressive 100%. The information, shared in Lookonchain’s latest report on July 3, indicates Ethereum earned $2.73 billion in fee income, surpassing Bitcoin’s $1.3 billion figure. Tron Network also made it to the top three with around $460 million.
It is important to note that the opinions and views expressed in this article, whether by the author or individuals mentioned, are for informational purposes and do not serve as financial, investment, or other advice. Investing or trading in cryptocurrencies carries inherent risks.
For further details, check out the SEC’s approval of the spot Bitcoin-Ethereum ETF, as well as the significant increase in Ethereum’s annual revenue compared to Bitcoin.