The relatively lackluster performance of nine new Ether (ETH) futures exchange-traded funds (ETFs) has prompted analysts at K33 Research to “rotate back” to Bitcoin (BTC).
At the market on October 3rd reportAnalysts Anders Helseth and Vettle Lunde said that the Ether futures ETF’s initial trading volume was only 0.2% of the volume accumulated by the ProShares Bitcoin Strategy ETF (BITO), and that the Ether futures ETF’s initial trading volume was only 0.2% of the volume accumulated by the ProShares Bitcoin Strategy ETF (BITO), which could lead to “pulling the brakes on ETH.” “The time has come to switch back to BTC.” On the first day of trading in October 2021.
Analysts said no one expected the Ether futures ETF’s initial trading volume to come “close” to that of the Bitcoin futures ETF, which launched amidst a raging bull market, but the overwhelming He said the numbers were “significantly” lower than expected.
This lack of institutional investor appetite for Ether ETFs has led Lunde to backtrack on his previous advice to increase ETH allocations to take full advantage of the ETF hype.
“The launch of the ETH Futures ETF provides an important lesson in assessing the impact of easy access to crypto investing for traditional investors. It will only create buying pressure if there is demand that is not there,” Lunde said.
“This does not apply to ETH at this time.”
In a section of the report titled “Moving forward,” Runde writes that the majority of the crypto market lacks meaningful short-term price drivers and will continue to have a flat trajectory for the foreseeable future. He explained that it was highly likely.
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In Runde’s view, this situation is very favorable for Bitcoin, with the possibility of ETF approval early next year and looking forward to the halving event, currently scheduled for mid-April.
“Cryptocurrency gravitational pull remains on BTC for the time being, with a promising event horizon in the future and active accumulation still favorable.”
Ben Laidler, global market strategist at eToro, envisions a similar path forward for crypto assets, albeit with slightly more bearish sentiment.
In an emailed comment to Cointelegraph, Laidler pointed to current macro trends as a potential downside to the price of major crypto assets such as Bitcoin.
“Over the past few years, the Federal Reserve and oil prices have consistently had strong macro influence on the crypto market,” Laidler wrote. “We are currently in the tail end of the rate hike cycle and the market is looking for more upside to push up, but oil prices are rising again, which could have a cooling effect on sentiment.”
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