Spot Ether ETF Launch Moved to July 8, 2024; ETH/BTC Pair Touted as a Bargain

Speculation is that ETH could outperform BTC after the Spot ETF goes live. K33 Research published a report on July 2, 2024, which is the source of this speculation.

The launch of the Spot Ether ETF has been highly anticipated, and its arrival could significantly impact the price dynamics of ETH. According to a report by K33 Research on July 2, there is speculation that ETH could outperform BTC following the launch of the ETF.

However, the report also suggests that Ether might stumble immediately after its ETF launches. Highlighting two factors in their analysis, analysts Vetle Lunde and David Zimerman note that the Spot Ether ETF could be the golden egg for ETH’s price. They suggest that the chances of outperformance arise from the ongoing selling pressure due to Mt. Gox as the defunct platform returns $8.5 billion to creditors in repayments.

“ETFs are a solid catalyst that will strengthen ETH over time. The patient trader can view the ETH/BTC pair as a bargain,” Lunde wrote in the report.

The analysts maintain a bullish outlook for ETH, expecting an inflow of 0.75–1% of ETH's circulating supply, which could occur within the first five months of the ETF's launch. Notably, they also acknowledge that the market seems to disagree with this speculation.

Given that ETH is valued at $3,343.74 against BTC at $60,484.14, it is convenient to assume that the market thinks otherwise. The difference lies not just in token value but also in market cap, with Bitcoin maintaining a dominance of over 50% while Ethereum stands at less than 20%.

A jump closer to BTC would require a surge of several thousand percentages at best. At its highest projection, ETH is expected to close the year at around $4,000. The approval of the ETF could help fuel this growth and possibly cross the $5,000 mark, but anything beyond that remains a distant dream.

The performance of the ETF itself is promising, especially considering the SEC's cautious approach, which instills a sense of confidence among investors and traders, giving hope to other crypto ETFs.

In the short term, predictions for ETH are bullish, with the token expected to reach as high as $3,479.18 within the next 30 days. This marks a 3.10% increase amidst a price volatility of 3.75% and a 14-day RSI of 45.10. Compared to BTC, which is expected to cross the $80,000 milestone quite easily, ETH's performance is slower.

According to K33 Research, there is a possibility that Ethereum will outperform Bitcoin, although it might take a very long time to do so. Among the key altcoins, ETH has been a top contender to outpace BTC.