Time to ‘pull the brakes’ on Ethereum and rotate back to Bitcoin: K33 report

The comparatively lackluster show of 9 caller Ethereum futures speech traded funds (ETFs) has prompted analysts astatine K33 Research to impulse a “rotate back” into Bitcoin (BTC). 

In an Oct. 3 marketplace report, analysts Anders Helseth and Vetle Lunde said that it’s “time to propulsion the brakes connected ETH and rotate backmost into BTC,” with the archetypal trading measurement of Ether futures ETFs lone accounting for 0.2% of what the ProShares Bitcoin Strategy ETF (BITO) amassed connected its archetypal time of trading successful Oct. 2021.

While the analysts noted that nary 1 expected to spot archetypal trading measurement connected the Ether futures ETFs “come anyplace close” to that of the Bitcoin futures ETFs — launched amid a raging bull marketplace — the underwhelming first-day numbers “strongly” missed expectations.

Day 1 trading of ETH futures ETFs accounted for conscionable 0.2% of what BTC futures ETFs amassed successful 2021. Source: K33 Research

This deficiency of organization appetite for Ether ETFs caused Lunde to locomotion backmost connected his erstwhile proposal of expanding ETH allocation to champion capitalize connected the ETF hype.

“The ETH futures ETF motorboat provides an important acquisition for evaluating the interaction of easier entree to crypto investments for accepted investors: accrued organization entree volition lone make buying unit if important unsatiated request exists,” wrote Lunde.

“This is not the lawsuit for ETH astatine the moment.”

In the conception of the study titled “more chop ahead,” Lunde explained that the immense bulk of the crypto marketplace lacks immoderate meaningful short-term terms catalysts and volition astir apt proceed connected its sideways trajectory for the foreseeable future.

Related: Bitcoin bull marketplace awaits arsenic US faces ‘bear steepener’ — Arthur Hayes

In Lunde’s view, this scenery is lone truly favorable for Bitcoin, which has a imaginable spot for ETF support to look guardant to aboriginal adjacent year, arsenic good as the halving lawsuit which is currently connected way for mid-April.

“The gravitational propulsion successful crypto for the clip being stays successful BTC, with a promising lawsuit skyline down the line, inactive favoring assertive accumulation.”

Ben Laidler, planetary markets strategist astatine eToro, charted a akin way up for crypto assets, albeit with a somewhat much bearish sentiment.

In emailed comments to Cointelegraph, Laidler pointed to existent macro trends arsenic a imaginable downward trigger for prices of mainstay crypto assets similar Bitcoin.

“The Fed and lipid prices person been consistently almighty macro influencers connected the crypto marketplace successful the past mates of years,” wrote Laidler. “At the precocious signifier of the complaint hike rhythm we’re in, the marketplace is looking for further bully quality to propulsion on, but with lipid prices rising again, this could person a cooling effect connected sentiment.”

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