The impact of Bitcoin spot ETFs is underestimated
Since the asset management giant BlackRock submitted the Bitcoin spot ETF application in June, the issue of Bitcoin in the ETF has received considerable attention, and then a large number of asset management companies have filed applications one after another, such as: Fidelity, Invesco , WisdomTree, etc.
After Grayscale won a lawsuit with the US Securities and Exchange Commission (SEC) last week, the possibility of the SEC's approval of a bitcoin spot ETF seems to have increased, but the excitement in the market has been delayed by companies such as BlackRock last week. The filing quickly faded, flattening the gains brought about by Grayscale’s win.
In response, cryptocurrency market analysis firm K33 Research stated in a report on Tuesday that the market appears to be underestimating the potential impact of a bitcoin spot ETF. Vetle Lunde, senior analyst at K33, noted in the report:
“Approval of a spot ETF should attract massive inflows and generate massive buying pressure on BTC. Conversely, even if a BTC spot ETF is rejected, it will at best maintain the status quo.”
In addition, Vetle Lunde also stated that the current price level provides an excellent buying opportunity for long-term investors:
“By all accounts, this is a buyer’s market and it would be reckless not to actively accumulate bitcoin at current levels.”
Ethereum expected to outperform Bitcoin
In addition to paying attention to Bitcoin, K33 Research also stated in the report that the second largest cryptocurrency, Ethereum, also deserves attention in September and October, and its performance may even surpass Bitcoin (BTC).
K33 Research noted that the deadline for the U.S. Securities and Exchange Commission (SEC) to approve or reject the first Ethereum futures ETF is in mid-October, and the chances of the SEC approving the product are high. Vetle Lunde pointed out that after Bitcoin passed the first futures ETF two years ago, it rose by 60% in the first three weeks of listing. Therefore, the Ethereum futures ETF also has a great possibility to drive the price of Ethereum up.
Vetle Lunde says:
"The market situation is favorable for ETH, and it is strongly recommended to buy relative to Bitcoin. The exchange rate of ETH/BTC is close to the low point in two and a half years, and relatively speaking, it has a large upside."
