Ethereum Poised to Outshine Bitcoin After Spot ETH ETF Launch: Report

Published: Jul 3, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

The crypto industry is counting the days until the launch of spot Ethereum ETFs in the United States. At the same time, industry experts are forecasting a potential shift in the performance dynamics between Ethereum and Bitcoin.

K33 Research analysts Vetle Lunde and David Zimmerman have a case for Ethereum’s potential outperformance in the weeks following the ETF launch.

Key points:

  • Spot Ethereum ETFs could be a “golden egg” for ETH’s price.
  • Bitcoin faces $8.5 billion selling pressure from Mt. Gox creditor repayments.
  • ETH has underperformed against BTC for over a year.
  • Analysts expect an initial ETH stumble post-ETF launch, followed by inflow-driven gains.

The analysts’ July 2 report highlights various factors that could push Ethereum’s performance relative to Bitcoin. While Ethereum has lagged behind Bitcoin for more than a year, with the latter benefiting from over $14 billion inflows to Bitcoin exchange-traded products, the landscape may be about to change.

Also check out: Gemini Forecasts $5 Billion Influx For Spot Ethereum ETFs In First Six Months

Ethereum might experience a brief dip post ETF launch

Lunde and Zimmerman acknowledge that Ethereum might experience a brief dip immediately following the ETF launch. However, they draw parallels to Bitcoin’s post-ETF trajectory.

The report suggests that sustained inflows into these new investment vehicles could ultimately boost Ethereum’s price. 

Additionally, the report sheds light on an impending challenge for Bitcoin. As spot Ethereum ETFs prepare for launch, Bitcoin faces potential selling pressure.

Approximately $8.5 billion worth of Bitcoin is set to be returned to creditors of the collapsed Mt. Gox exchange starting this week. The report stated that it could introduce major downward pressure on Bitcoin’s price.

Adding to that pressure, government entities have emerged as consistent sellers in the cryptocurrency space. The German government, in particular, has been offloading approximately hundreds of BTC to exchanges each weekday.

A deeper look into the performance of Bitcoin also shows heightened volatility. Bitcoin is struggling near the $63,000 area, with prices now dropping to the $61,000 level in the last 24 hours.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.