- According to one financial manager, ether will appreciate in value in relation to bitcoin, with the ETH/BTC ratio rising to 0.06.
- The legalization of spot ether ETFs last week has caused a rise in the ether-to-bitcoin ratio.
One investment manager predicts that ether will continue to rise in value in relation to bitcoin in the near future as investors get interested in the second-largest digital currency by market cap due to the prospect of spot exchange-traded fund (ETF) trading.
The ratio of ETH to BTC is likely to continue rising, according to Joshua Lim, co-founder of Arbelos Markets, who spoke with The Block.
The ratio is currently 0.056, having risen gradually from a multi-month low of 0.045 in mid-May prior to the Securities and Exchange Commission of the United States (SEC) unexpectedly approving eight spot ether ETFs last week.
The ether spot ETFs were approved by the SEC on Thursday; however, they might not go live for a few weeks or months, in contrast to the bitcoin ETFs, which began trading the day after approval.
K33 Research concurs with Lim’s assessment, stating that until spot ether ETFs are introduced, ether is well-positioned for relative strength versus bitcoin. The K33 market report on Tuesday supports greater ether exposure for the time being.
The current state of affairs is favorable for overweight ether exposure, and the strength of the asset is comparable to the price movement of bitcoin in the months preceding the acceptance of BTC as an ETF.
While ether is only indirectly vulnerable to the enormous creditor obligations resulting from the Mt. Gox estate, filers will be chasing investors over the coming weeks in an effort to ensure a strong seed and traction for the eventual ETF launch.
According to the K33 Research experts, this supports the ether market’s sustained relative strength through the ETF’s introduction.
Rotational re-rating of ether
Lim went on to say that there is a prolonged period of price adjustment and reevaluation happening in the ether market. Lim continued, “I believe that we are witnessing a longer re-rating rotation because ether has been such an under-owned asset for so long.”
With the approval of the ether ETF, other large market-cap assets also seem to be attracting more interest. He noted that there was a notable surge in legacy proof-of-work coins, indicating that the market is beginning to factor in a higher likelihood of ETFs on a wider range of cryptocurrency assets.
Ether was trading for $3,838, having dropped more than 2.7% in the previous day.
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.
