Analysts from crypto research firm K33, formerly known as Arcane Research, have stated that the potential approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) is being undervalued by the crypto market. In a recent market report, K33’s senior analyst Vetle Lunde and vice president Anders Helseth explained that despite the lack of reflected sentiment in the price of Bitcoin and other cryptocurrencies, the chances of a spot Bitcoin ETF approval have significantly improved over the past three months.
Although Bitcoin had previously given up its gains following Grayscale’s legal victory over the Securities and Exchange Commission (SEC), the analysts believe that an ETF approval would attract massive inflows and greatly increase buying pressure for Bitcoin. They emphasized that the downside of a potential spot ETF rejection would be minimal, as Bitcoin prices would remain unaffected.
Lunde and Helseth argued that the market’s outlook on ETFs is fundamentally incorrect, dismissing the prevailing sentiment and urging investors to aggressively accumulate BTC at current levels. They further supported their bullish prediction by pointing to the recent 2% gain in the tech-heavy Nasdaq-100 index, often seen as an indicator of the broader market’s risk appetite.
In addition to their analysis on Bitcoin, the analysts also expressed optimism about the price of Ether (ETH). They believe that ETH is likely to outperform Bitcoin in the next two months due to strong momentum leading up to a futures-based ETF listing. Drawing a parallel to Bitcoin’s past performance, which saw a 60% increase in the weeks preceding the launch of the first Bitcoin futures-based ETF, Lunde and Helseth anticipate a similar path for Ether.
The verdict on a futures-based Ether ETF is expected to be announced in mid-October and is reportedly anticipated to receive approval from the SEC. This development has further fueled the analysts’ positive outlook on the price of Ether.
Overall, K33’s analysts assert that the potential approval of a spot Bitcoin ETF is underestimated by the crypto market. They argue that it is a buyer’s market and recommend investors to accumulate BTC aggressively. Furthermore, they expect Ether to outperform Bitcoin in the coming months, citing the strong momentum leading up to the anticipated futures-based ETF listing.
As the crypto market continues to evolve, the approval of ETFs could have significant implications for the prices and attractiveness of cryptocurrencies like Bitcoin and Ether. Investors will be closely following regulatory developments and market trends as they make strategic decisions in this evolving landscape.