K33 Research Advises Shifting Focus from Ether to Bitcoin Amid ETF Debut

Crypto analysis firm K33 Research has suggested that investors consider shifting their focus from Ether (ETH) to Bitcoin (BTC) following Monday’s debut of Ether futures-based exchange-traded funds (ETFs) in the US.

The launch of these ETFs, including offerings from VanEck, ProShares, and Bitwise, did not generate the same level of attention and trading activity as the introduction of Bitcoin futures ETFs in 2021.

In a market update from Tuesday that was first reported on by The Block, K33 Research analysts Vetle Lunde and Anders Helseth said the Ether ETFs experienced unexpectedly weak performance, accumulating just $8.5 million in assets under management on their launch day.

In contrast, Bitcoin ETFs amassed a substantial $576.5 million in AUM at their debut.

In this week's market report:
– Dissecting the underwhelming ETH futures ETF launch
– October market outlook

And more!https://t.co/M679cjXf2D

— K33 Research (@K33Research) October 3, 2023

Ether optimism has faded

In their report, the two analysts pointed out that while the anticipation surrounding the Ether ETFs led to increased Ether futures premiums, this optimism quickly faded due to the lackluster results.

Furthermore, the ETFs failed to reverse the ongoing trend of Ether’s declining value relative to Bitcoin, which has persisted for over a year.

Comparing this scenario to the 2017 launch of regulated Bitcoin futures contracts on the CME exchange in the US, Lunde and Helseth noted that it took years for institutional investors to embrace the Bitcoin futures market.

This stands in contrast to the rapid adoption of Bitcoin futures ETFs in 2021.

According to the analysts, this could mean that it is time to reallocate from Ether to Bitcoin.

“We no longer see a strong bull case for ETH/BTC in the short term,” they said.

Overall, the report said that traders are now divided in their outlook for the crypto market, with futures market data pointing to bearish sentiment while options data reveal a preference for bullish call options.