According to analysts from crypto research firm K33 (formerly Arcane Research), the crypto market is dramatically downplaying the potential bullishness of a spot Bitcoin exchange-traded fund (ETF) approval. In their market report on September 5th, K33 senior analyst Vetle Lunde and vice president Anders Helseth noted that despite not being reflected in the price of Bitcoin or other mainstream crypto assets, the chances of a spot Bitcoin ETF approval have greatly improved over the past three months.
The analysts explained that if approved, a spot Bitcoin ETF would attract significant inflows and considerably increase buying pressure for Bitcoin. They emphasized that the market has underestimated this potential, while a rejection of the spot ETF would have minimal impact on Bitcoin prices.
Lunde and Helseth added that with a higher likelihood of spot ETF approvals, as predicted by Bloomberg analysts to have a 75% chance of approval within the year, the market’s perspective on ETFs is fundamentally incorrect. They believe it is a buyer’s market and recommend aggressively accumulating BTC at current levels.
Supporting their bullish prediction, the analysts pointed to the recent 2% gain in the tech-heavy Nasdaq-100 index, which is often considered an indicator of the broader market’s risk appetite.
ETH Expected to Outperform BTC
The analysts also expressed optimism about the price of Ether (ETH) and anticipate it will outperform Bitcoin in the next two months. They believe ETH will benefit from strong momentum leading up to a futures-based ETF listing. They compared it to Bitcoin’s performance, which gained approximately 60% in the weeks preceding the launch of the first Bitcoin futures-based ETF on October 19, 2021.
The decision on a futures-based Ether ETF is expected in mid-October and is reportedly likely to receive approval from the Securities and Exchange Commission (SEC).
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