Ethereum's price could be supported by Capital inflows into upcoming US Spot ETFs, while Bitcoin faces headwinds from Mt. Gox.
K33 Research analysts said the launch of Spot Ethereum ETFs could see the cryptocurrency with the market's second-largest market cap perform better than Bitcoin in the weeks after their US launch.
According to a report by K33 analysts, the expected Ethereum ETF launch as soon as July 8, is a “golden egg” for the price of ETH, while Bitcoin will face selling pressure when $8.5 billion worth was returned to creditors of collapsed exchange Mt. Gox starting this week.
ETH has underperformed Bitcoin for more than a year, with the latter's market-leading gains bolstered by more than $14 billion worth of inflows into Bitcoin exchange-traded products this year.
Lunde and Zimmerman expect ETH “to stumble shortly after the ETF launch” but like what happened later with Bitcoin – Capital inflows into the fund will likely boost ETH price. “The ETF is a solid catalyst for ETH 's relative strength as the summer wears on and flows accumulate, and I certainly XEM the current ETH/ BTC price as a bargain for traders,” Lunde wrote. patient".
The price of Ethereum compared to Bitcoin quickly reversed after the SEC's sudden decision to approve the Spot Ethereum ETF. Even so, Lunde and Zimmerman said Ethereum Futures Contract open interest is “unrelenting,” suggesting that many traders are using high leverage to bet on ETH 's potential price action before exiting. ETF eye.
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