Ethereum Poised to Surpass Bitcoin Following ETF Debut, Predicts Kaiko
A recent analysis by Kaiko suggests that Ethereum (ETH) could outperform Bitcoin (BTC) once Ethereum exchange-traded funds (ETFs) are introduced in the United States.
The study delves into the ETH to BTC Price Ratio, a critical indicator that gauges the quantity of Bitcoin needed to acquire one Ethereum.
Presently, this ratio stands at 0.05, representing a rise from the previous 0.045 following the approval of spot Ether ETFs by the Securities and Exchange Commission (SEC). This uptick implies that Ethereum is gaining strength relative to Bitcoin.
The report also highlights Ethereum’s limited market depth. Market depth measures the ease of buying or selling an asset without triggering significant price fluctuations. Scant market depth suggests that substantial transactions could lead to more significant price swings, potentially bolstering Ethereum’s value.
Another key aspect is the Ethereum Exchange Reserve, which monitors the amount of Ether available for purchase on exchanges. As per the analysis, this reserve is currently at its lowest level in years, hinting at a potential supply shortage. With institutional investors aiming to populate their new Ethereum ETFs, this scarcity in supply might propel prices significantly higher.
Moreover, the impending launch of spot Ethereum ETFs has stirred significant excitement within the cryptocurrency sphere. According to insights from Bloomberg’s analyst James Seyffart, the SEC has instructed applicants to submit revised S-1 forms by July 16, hinting at a probable launch date around July 23.
In conclusion, the anticipated introduction of Ethereum ETFs in the US market has sparked optimism regarding Ethereum’s performance compared to Bitcoin. The evolving dynamics of market ratios, depth, and exchange reserves underscore the potential for Ethereum to strengthen its position in the cryptocurrency landscape. As investors eagerly await the ETF launch, the market awaits to witness how these developments will influence the value and trajectory of Ethereum in the coming days.
