The recent subdued performances of nine new Ethereum futures exchange-trade funds (ETFs) hint at shifting investor interest, and seem to be triggering a shift back to Bitcoin. K33 Research analyst, Vetle Lunde and Anders Helseth, suggest it might be time to ‘slow down’ with Ethereum. They note that the initial trading volume of Ether futures ETFs amounted to only 0.2% of what ProShares Bitcoin Strategy ETF clocked on its debut day of trading in October 2021.
On the one hand, skeptics might consider the relatively depressed trading volume as a reflection of depleting market interest. Yet, no one quite expected the Ether futures ETFs to match up to the trading volumes of Bitcoin futures ETFs, specifically since these were launched during a hot bull market phase.
However, what surprised and somewhat disillusioned observers was that the first-day numbers were significantly lower than anticipated – signaling a possible lackluster interest in Ether ETFs. Vetle Lunde, no less, retracted his previous advice of preferring Ether allocations to capitalize on ETF enthusiasm.
What emerges now, making it important to reconsider the impact of easy access to crypto investments for traditional investors: increased institutional access will only boost buying pressure if significant unsatiated demand exists. Currently, that doesn’t seem to be the case for Ether.
An equally significant part of the K33 report, aptly titled “more chop ahead,” suggests that the lion’s share of the crypto market lacks compelling short-term price triggers. It’s likely that the market could continue to drift sideways in the coming months. The bigger players, such as Bitcoin, seem to have favorable things to look forward to – a potential spot for ETF approval on the horizon and the halving event expected in mid-April.
Moreover, global market strategist at eToro, Ben Laidler, seems to concur with a slightly more bearish sentiment. He identified ongoing macro trends as a potential downward driver for incumbent crypto assets such as Bitcoin. He points out that the Fed and oil prices have been consistent macro influencers on the crypto market in recent years. But with rising oil prices, the market may well need more good news to bolster it.
Taken together, all these factors suggest we may be at a key juncture where investors might need to reconsider their crypto portfolios. As these shifts in sentiment indicate, prudent investors should keep an eye on market dynamics and make informed decisions.
Source: Cointelegraph
