K33 Research’s Financial Analysts believe that the approval and launch of Ethereum ETFs will rise the Ethereum price, outperforming Bitcoin.
Financial Analysts of K33 Research predicts that the Ethereum ETFs approval and launch in the US will result an enormous increase in the Ethereum’s price. This price rise is said to be surpass Bitcoin. The prediction is based on the past trends, predicted increased demand and technical analysis.
Historical Precedent: Bitcoin’s ETF Boom
K33 Research brings comparisons with Bitcoin’s performance after its ETF launch. When the first Bitcoin ETF was approved in the United States, Bitcoin’s price was increased by around 60%, reaching its all time high. now, they are expecting same “ETF Bump” for Ethereum.
Ethereum ETF’s Current Technical Position
For around 2 years, Ethereum price has been falling in comparison to Bitcoin. However, K33 Research analysts believe that ETFs introduction may reverse this trend, with Ethereum gaining ground on Bitcoin.
Factors Driving the Prediction
Increased Demand: ETFs make investing in Ethereum easier and more accessible, which is likely to attract an extensive number of new investors and boost the demand.
Supply Shock: As more Ethereum becomes invested into ETFs, the available supply on exchanges may decrease, driving the price higher.
Institutional Adoption: ETFs provide a regulated and familiar way for institutions to invest in Ethereum, which results in a huge amount of money inflows.
Positive Sentiment: ETF approval could boost trust in Ethereum’s permanent customers, attracting even more investors.
Expert Opinions and Counter Arguments
While K33 Research remains positive, not everyone is having the same viewpoint. Some experts are saying that the initial excitement surrounding the ETF launch will fade quickly and the actual impact on the Ethereum’s price will be smaller than expected.
While others point to the possible legal barriers that might delay the adoption of Ethereum ETFs.
The cryptocurrency market is still developing and the introduction of Ethereum ETFs represents an important milestone. While the prediction of Ethereum outperforming Bitcoin is good, but it is still important to remember that the market is volatile.
Also Read: Ethereum ETF: Experts Predict Chance for Price Surge
