K33 Research Analysts Recommend Shifting Back to Bitcoin After Weak Ether ETFs Start
Summary:
K33 Research analysts, Anders Helseth and Vetle Lunde, have recommended a shift back into Bitcoin (BTC) following the disappointing performance of nine Ethereum futures ETFs. They cited the low initial trading volume of these ETFs compared to ProShares Bitcoin Strategy ETF (BITO) as the main reason. The analysts argue that while institutional access to cryptos can stimulate buying activity, the lack of significant demand for Ether currently discourages it. They consider Bitcoin to be a more favorable crypto investment choice, with the potential approval of a Bitcoin ETF and a halving event on the horizon next year.
The subpar performance of nine Ethereum futures ETFs (exchange-traded funds) has led K33 Research analysts to recommend a shift back into Bitcoin (BTC). In a market report dated October 3, Anders Helseth and Vetle Lunde suggested it's time to hit pause on Ethereum (ETH) and pivot back to Bitcoin. They pointed out the disappointing start of Ether futures ETFs, which only represented 0.2% of the trading volume that the ProShares Bitcoin Strategy ETF (BITO) experienced on its debut day in October 2021. Both analysts conceded that while no one anticipated the ETH futures ETFs to match the BTC futures ETFs' trading volume, the underwhelming launch numbers significantly fell short of anticipations.
The weak institutional demand for Ether ETFs persuaded Lunde to reconsider his previous advice regarding boosting ETH allocations to leverage ETF excitement. He said: "The ETH futures ETF roll out serves as a crucial lesson in assessing how simpler crypto investment access for conventional investors impacts. Increased institutional access will only generate more buying pressure if there is ample unmet demand. Currently, ETH does not meet this condition."
In the part of the report titled "more chop ahead," Lunde predicted that the majority of the crypto market lacks strong short-term price drivers and will likely remain afloat in the short term. He thought this climate was more suited to Bitcoin, which potentially anticipates the approval of its ETF early next year and a halving event lined up for mid-April. "The pull in the crypto space remains with BTC due to a promising event on the horizon, making aggressive accumulation a favorable approach," Lunde stated.
Similarly, Ben Laidler, a global markets strategist at eToro, anticipated a somewhat similar yet slightly bearish route for crypto-assets. Speaking to Cointelegraph via email, Laidler highlighted the existing macro trends that could pull the prices of primary crypto-assets, such as Bitcoin, further down. He wrote, "The Fed and oil prices have consistently influenced the crypto market in recent years. As we approach the end of the rate hike cycle, the market wants more good news, but with a resurgence in oil prices, there might be a dampening impact on the sentiments.
Published At
10/5/2023 2:03:09 AM
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