Ethereum to Outperform Bitcoin After ETF Launch, Says K33 Research

K33 Research analysts believe that Ethereum (ETH) is poised to outperform Bitcoin (BTC) in the coming weeks following the launch of U.S.-based spot Ether ETFs. These ETFs, expected to launch as early as July 8, are considered a significant catalyst for ETH's price growth. The analysts highlight that while Bitcoin is facing headwinds from Mt. Gox creditor repayments, Ethereum is set to benefit from inflows into the new ETFs, similar to the positive impact seen on Bitcoin's price after its ETF launches in 2024. Although ETH is expected to face initial price volatility, K33 anticipates that inflows into the ETFs will ultimately bolster ETH's price, ultimately exceeding the impact of Mt. Gox repayments on BTC. The analysts project that ETH's price will increase in the months following the ETF launch, driven by inflows equivalent to 0.75-1% of ETH's circulating supply. Despite current market skepticism, K33 maintains a bullish outlook for ETH, pointing to the high open interest in ETH futures as evidence of trader confidence in the cryptocurrency's potential. The surprise approval of Ether ETFs by the SEC prompted a quick reversal in the ETH/BTC ratio, which has been declining for the past 12 months. While the market currently sees Bitcoin as the dominant force, K33 believes that Ethereum's fundamentals and potential for growth make it a strong contender for outperforming Bitcoin in the near future.