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

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

by Harry Garcia

The lackluster performance of nine new Ethereum futures exchange traded funds (ETFs) has led analysts to recommend shifting focus back to Bitcoin. In a recent report by K33 Research, analysts Anders Helseth and Vetle Lunde expressed disappointment in the initial trading volume of Ether futures ETFs, which accounted for only 0.2% of what the ProShares Bitcoin Strategy ETF (BITO) accumulated on its first day of trading in October 2021.

While the analysts acknowledged that it was unrealistic to expect the trading volume of Ether futures ETFs to match that of Bitcoin futures ETFs, they emphasized that the underwhelming first-day numbers significantly missed expectations. This lack of institutional interest in Ether ETFs prompted Vetle Lunde to retract his previous advice of increasing ETH allocation to capitalize on the hype surrounding ETFs.

According to Lunde, the current market environment lacks any meaningful short-term price catalysts, indicating that the crypto market will likely continue its sideways trajectory for the foreseeable future. In light of this, Lunde highlighted Bitcoin as the more favorable option, citing the potential spot for ETF approval early next year and the upcoming halving event in mid-April as factors that favor aggressive accumulation of Bitcoin.

Ben Laidler, global markets strategist at eToro, shared a similar sentiment, albeit with a slightly more bearish outlook. He pointed to current macro trends, such as the influence of the Federal Reserve’s policies and oil prices, as potential triggers for downward pressure on prices of mainstream crypto assets like Bitcoin.

Overall, the underwhelming performance of Ether futures ETFs and the lack of short-term price catalysts have led analysts to recommend rotating back into Bitcoin. While the market may face challenges and uncertainties, Bitcoin appears to have more favorable events on the horizon, making it an attractive option for investors.

You may also like

@2023 – All Right Reserved. Developed by Crypto Explorers