The relatively lackluster performance of nine new Ethereum futures exchange-traded funds (ETFs) has led analysts at K33 Research to call for a “return” to Bitcoin (btc).
At a market on October 3 reportanalysts Anders Helseth and Vetle Lunde said it's "time to put the brakes on ETH and rotate back into BTC," with the initial trading volume of the Ether futures ETFs only representing 0.2% of what the ETF accumulated by ProShares Bitcoin Strategy (BITO). on its first day of trading in October 2021.
While analysts noted that no one expected the initial trading volume of Ether futures ETFs to "come close" to that of Bitcoin futures ETFs, launched amid a raging bull market, the disappointing first day numbers They "strongly" failed to meet expectations.
This lack of institutional appetite for Ether ETFs caused Lunde to backtrack on his previous advice to increase the ETH allocation to better capitalize on the ETF hype.
"The launch of the ETH futures ETF provides an important lesson for evaluating the impact of easier access to cryptocurrency investments for traditional investors: greater institutional access will only create buying pressure if there is significant unmet demand," he wrote Monday.
“This is not the case for ETH right now.”
In the section of the report titled “further developments,” Lunde explained that the vast majority of the cryptocurrency market lacks significant near-term price catalysts and will most likely continue its sideways trajectory for the foreseeable future.
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In Lunde's opinion, this outlook is only really favorable for Bitcoin, which also has a potential spot for ETF approval early next year. like the halving event currently on the way for mid-April.
“The gravitational pull of cryptocurrencies for the moment remains on BTC, with a promising event horizon ahead still favoring aggressive accumulation.”
Ben Laidler, global markets strategist at eToro, charted a similar path for cryptoassets, albeit with slightly more bearish sentiment.
In comments emailed to Cointelegraph, Laidler pointed to current macroeconomic trends as a possible trigger for downward prices of major cryptoassets like Bitcoin.
“The Federal Reserve and oil prices have been consistently powerful macro influencers in the cryptocurrency market in recent years,” Laidler wrote. "At the late stage of the rate-hiking cycle we're in, the market is looking for more good news to move forward, but with oil prices rising again, this could have a cooling effect on sentiment."
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