- Eric Balchunas, a Bloomberg analyst, estimates that the eagerly awaited Ethereum ETFs may become live in the US by July 23.
A recent research from Kaiko suggests that Ether might do better than Bitcoin after the much-awaited Ethereum exchange-traded funds (ETFs) were introduced in the US.
The Ether ETH tickers down $3,468 to Bitcoin BTC tickers down $64,739 Price Ratio—a metric that indicates how much BTC is needed to buy one ETH—was the focus of the study. The price of Ether in relation to Bitcoin increases as this metric rises, and vice versa.
The ratio was recorded as 0.045 prior to the Securities and Exchange Commission (SEC) approving the spot Ether ETFs; it is currently at 0.05.
The research also mentioned Ether’s 1% market depth as a possible trigger for an impending ETH bull run. Market depth is a metric used to quantify market liquidity. Higher liquidity stabilizes market prices in the face of big orders, whereas lower liquidity in an asset leads to higher volatility.
The Ethereum Exchange Reserve, a measure of the amount of Ether available for purchase on exchanges, is at multi-year lows and may indicate an impending supply shock caused by institutional demand to fill their Ethereum ETFs, which could drive prices significantly higher. This low market depth is supported by this metric.
Soon, an Ethereum ETF
Analysts predict that the spot Ethereum ETFs could start sooner rather than later, and all eyes are on this event. Eric Balchunas, a senior analyst at Bloomberg ETF, is still predicting a July debut window. Balchunas claims that the SEC requested that applicants submit updated S-1 forms by July 16 in order to avoid a possible launch date of July 23.
Tom Dunleavy, an institutional investor, recently stated to Cointelegraph that he thinks $10 billion will come into the Ethereum ETFs at a rate of about $1 billion a month.
Regulatory dispute
The question of whether ether is a security or a commodity has generated a lot of discussion among regulators. Attorney Laura Brookover of Conensys claims that the SEC abandoned its inquiry into the smart contract protocol in June, most likely to save face.
In a recent statement, Commodities Futures Trading Commission (CFTC) head Rostin Behnam said that Ethereum (ETH) is a commodity and falls within the jurisdiction of his organization.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
