Analyst Predicts Ethereum ETF Launch Could Boost ETH Performance Over BTC
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Highlights:
- Analysts predict ETH will continue to outpace BTC with the Ethereum ETF launch.
- The SEC’s delay in approving spot Ethereum ETF raises concerns among market participants.
- ETH ETF launch could drive prices to $4,000-$5,000, or even $8,000, analysts predict.
Over the past two months, Ethereum (ETH) has performed better than Bitcoin (BTC). Analyst Michael Van de Poppe predicts ETH will continue to outperform, especially with the launch of a spot Ethereum Exchange-Traded Fund (ETF) in the US.
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The $BTC dominance has likely peaked. Ethereum has been outperforming Bitcoin for two months straight.
The upcoming Ethereum ETF will likely push it even further, through which the potential bearish divergence on the weekly timeframe seems inevitable to be valid. pic.twitter.com/gauZeQKYNf
— Michaël van de Poppe (@CryptoMichNL) July 13, 2024
The analyst sees the current ETH/BTC prices as favorable for patient traders. The upcoming Ethereum ETF launch is anticipated to solidify ETH’s position and increase its value with the participation of institutional investors in the market. However, the upcoming ETF could significantly impact Ethereum’s market dynamics. Currently, Ether futures are priced lower than Bitcoin futures, despite investors expecting ETH to perform better after the ETF launch.
Market Awaits SEC Decision
The SEC has not yet approved spot Ethereum ETFs, causing issuers to wait longer than expected. Nate Geraci, President of ETF Store, stated that the SEC seems to be treating the spot Ethereum ETF S-1 filings in a manner similar to the 19b-4 forms. Despite the SEC’s silence, Geraci remains optimistic that approval for the spot Ethereum ETF will come next week. He stated, “I still think approval is likely next week. There is absolutely no reason for delay.”
It appears the SEC is playing the spot eth ETF S-1s similar to the 19b-4s…
*Extremely* tight-lipped.
Still think approval next week. Absolutely no reason for delay.
— Nate Geraci (@NateGeraci) July 12, 2024
Bloomberg’s ETF strategist Eric Balchunas pointed out that the SEC has provided no updates on Ethereum ETFs, causing confusion among issuers. Major market participants and large Ethereum holders have been buying ETH in anticipation of ETF approval, expecting the price of ETH to rise significantly afterward.
Over the last few weeks, major market players have been accumulating ETH in anticipation of ETF approval. Tron founder Justin Sun has amassed $1.1 billion worth of Ethereum, preparing for a potential rally.
Ethereum ETF Launch Could Push ETH to New All-time High
Kraken’s Head of Strategy, Thomas Perfumo, told Bloomberg that the launch of spot Ethereum ETFs will draw more capital and boost public interest in crypto. He mentioned that the crypto market anticipates $750 million to $1 billion in net inflows into Ethereum ETFs within one month. The Kraken manager said if ETH inflows meet expectations, Ethereum could reach new highs between $4,000 and $5,000.
Additionally, a crypto analyst known as ‘Bluntz’ on X (formerly Twitter) has shown bullish optimism for Ethereum’s future. The analyst predicted that ETH could experience a mega rally, reaching an all-time high of $8,000 in this market cycle.
Bitcoin Faces Potential Sell Pressure
Bitcoin is expected to face selling pressure as $8.5 billion worth of BTC is returned to the creditors of the bankrupt crypto exchange, Mt. Gox. Such an influx of Bitcoin into the market could put downward pressure on its price. However, analyst Benjamin Cowen highlighted that the earlier expectation of Ethereum outperforming Bitcoin has not materialized as anticipated.
According to Cowen, changes like the move from proof-of-work to proof-of-stake haven’t significantly affected the ETH/BTC pair. He remains doubtful about the spot ETF for ETH’s ability to maintain a high ETH/Bitcoin valuation, drawing comparisons with past market trends.
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