Ethereum Eyes Potential Outperformance Against Bitcoin Post-ETF Launch
Analytics firm Kaiko suggests Ethereum (ETH) could outpace Bitcoin (BTC) following the approval of spot ETH exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in May.
Despite ETH’s recent 20% decline, Kaiko notes underlying indicators are bullish for ETF launches.
The ETH/BTC ratio, a gauge of relative performance, remains elevated around 0.05, up from pre-approval levels of 0.045, indicating potential continued ETH outperformance post-ETF.
Bloomberg’s ETF expert Eric Balchunas forecasts the ETH ETF launch on July 23rd. However, crypto analyst Benjamin Cowen cautions that while anticipated, the ETF might not significantly boost Ethereum’s valuation against Bitcoin.
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Cowen emphasizes Federal Reserve monetary policies as a more significant price driver for ETH, casting doubt on bullish narratives surrounding Ethereum’s ETF and past bullish trends.
“In 2022, ETH/Bitcoin was .08 BTC, and now it’s in the mid-.04s BTC in 2024,” Cowen reflects, suggesting monetary policy’s weight over technical narratives like proof-of-stake’s impact on Ethereum’s valuation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
