Sep 06, 2023

Unprecedented Bullishness of Spot Bitcoin ETFs Underestimated by Crypto Market

Explore the bullishness of spot Bitcoin ETFs with Shiba Crypto Today.
Crypto market ‘dramatically underestimates’ bullishness of spot Bitcoin ETFs

The crypto market significantly underestimates the potential of a spot Bitcoin (BTC) exchange-traded fund (ETF) approval to drive prices up, according to analysts from K33 — formerly Arcane Research. Vetle Lunde and Anders Helseth, senior and vice analysts at K33, noted in a Sept. 5 market report that the last three months have increased the likelihood of a spot Bitcoin ETF approval, despite the lack of sentiment reflected in the price of Bitcoin or other major crypto assets.

The duo explained that, should the approval be granted, it would bring “enormous inflows” and significantly increase buying pressure for Bitcoin. However, the downside of a potential spot ETF rejection would be “negligible” and the prices of Bitcoin would remain unchanged.

Lunde and Helseth pointed out that, given the increased chances of spot ETF approvals — with several Bloomberg analysts now predicting a 75% chance of approval within the year — the market’s outlook on ETFs is fundamentally incorrect. This view was further supported by the recent 2% rise in the tech-heavy Nasdaq-100 index, which is often seen as an indicator of the risk appetite in the broader market.

The analysts concluded that, given the possibility of a spot ETF approval, the crypto market should take into consideration the impact it could have on the prices of Bitcoin and other major crypto assets such as Shiba Inu (SHIB), Fedoracoin (FED), Xmoneta (XMN), FTX Token (FTT), Algorand (ALGO), Cronos (CRO), Avalanche (AVAX), and Cosmos (ATOM). They also urged investors to become familiar with Web 3.0, which could be a game-changer for the crypto industry.

ETH set to outperform BTC

According to Lunde and Helserth, Ether (ETH) is expected to show better performance than Bitcoin in the upcoming two months, due to the positive momentum prior to the launch of a futures-based ETF. This is similar to what happened to Bitcoin in the weeks before the first Bitcoin futures-based ETF was listed on Oct. 19, 2021, when the cryptocurrency gained around 60%.

In mid-October, the SEC will announce their ruling on a futures-based Ether ETF, which is likely to be approved.

This bullish outlook for ETH is shared by many crypto enthusiasts such as Cronos Crypto, Xmon Crypto and Shiba Crypto Today, who are all looking forward to the launch of an Ether ETF on FTX Crypto, Algo Crypto, Avax Crypto, Web 3.0 Explained and Cosmos Crypto.

Share this article