The relatively poor performance of nine new Ethereum Futures Funds (ETFs) has prompted analysts at K33 Research to urge a “return” to Bitcoin (BTC).
In the 3rd of October market a report“It’s time to stop ETH and switch back to BTC,” said analysts Anders Helseth and Vitel Lund, as the initial trading volume of the Ethereum futures ETF represents just 0.2% of what the ProShares Bitcoin Strategy ETF (BITO) raised on its first day of trading. In October 2021.
While analysts noted that no one expected to see initial trading volume on Ethereum futures ETFs “anywhere close” to that of Bitcoin futures ETFs — which were launched amid a raging bull market — the disappointing first-day numbers It came out disappointingly “strong.”
This lack of institutional appetite for Ethereum ETFs has led Lund to reverse his previous advice to increase Ethereum allocation to better take advantage of the ETF hype.
“The launch of the ETH Futures ETF provides an important lesson for evaluating the impact of easier access to cryptocurrency investments for traditional investors: increasing institutional access will only create buying pressure in the event of significant unsatisfied demand,” Lund wrote.
“This is not the case for ETH at the moment.”
In the section of the report titled “More Pieces Ahead,” Lund explained that the vast majority of the cryptocurrency market lacks any meaningful short-term price catalysts, and will likely continue on its sideways path for the foreseeable future.
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In Lundy’s view, this is a really favorable landscape for Bitcoin, which has a potential ETF approval spot to look forward to early next year, as well as the halving event currently on track for mid-April.
“Cryptocurrency appeal at the moment remains in BTC, with a promising event horizon down the line, still favoring strong accumulation.”
Ben Laidler, global markets strategist at eToro, charted a similar path forward for crypto assets, albeit with a slightly more bearish sentiment.
In email comments to Cointelegraph, Laidler pointed to current macro trends as a potential bearish catalyst for prices of underlying crypto assets like Bitcoin.
“The Fed and oil prices have been strong influences on the cryptocurrency market in the past two years,” Laidler wrote. “In the late stage of the rate hike cycle that we are in, the market is looking for more good news going forward, but with oil prices rising again, that could have a cooling effect on sentiment.”
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