K33 Research, a crypto market analytics firm, reported Tuesday that Ether (ETH) is likely to outperform Bitcoin (BTC) in September and October due to a potential exchange-traded fund (ETF) listing. The U.S. Securities and Exchange Commission’s (SEC) final deadline to approve or deny the first Ether ETF is in mid-October, and the chances are high that the agency will green-light the product.
“The odds are stacked in favor of ETH,” said K33 senior analyst Vetle Lunde, calling it a “strong relative buy” versus Bitcoin. “ETH/BTC trades near 2.5-year range lows, with considerable wiggle room for relative upside.” Bitcoin has received a fair share of fanfare with respect to ETFs since asset management giant BlackRock filed for a spot product in June, shortly followed by applications from a slew of other asset managers, Fidelity among them.
Last week, the probability of the SEC approving a spot Bitcoin ETF seemingly improved after Grayscale’s victory over the agency in a lawsuit about converting its closed-end Grayscale Bitcoin Trust (GBTC) into an ETF. However, the SEC delayed any decision on the June spot product filings by BlackRock and the others.
September is historically a difficult period for BTC’s price, with the crypto recording negative monthly returns that month in every year since 2016. Crypto asset manager QCP Capital forecasted that the largest crypto asset could sink to as low as $23,000 by the beginning of October.
“This is, by all accounts, a buyer’s market, and it’s reckless not to aggressively accumulate BTC at current levels,” Lunde said.
K33 Research believes that Ether is likely to outperform Bitcoin in the upcoming months due to a potential ETF listing. “The odds are stacked in favor of ETH,” said K33 senior analyst Vetle Lunde, calling it a “strong relative buy” versus Bitcoin. “ETH/BTC trades near 2.5-year range lows, with considerable wiggle room for relative upside.”
The U.S. Securities and Exchange Commission’s (SEC) final deadline to approve or deny the first Ether ETF is in mid-October, and the chances are high that the agency will green-light the product. September is historically a difficult period for BTC’s price, with the crypto recording negative monthly returns that month in every year since 2016. Crypto asset manager QCP Capital forecasted that the largest crypto asset could sink to as low as $23,000 by the beginning of October.
Despite the potential dip in Bitcoin’s price, Lunde believes that current price levels provide a buying opportunity for investors with a longer time horizon. “This is, by all accounts, a buyer’s market, and it’s reckless not to aggressively accumulate BTC at current levels,” he said.