Shifting Sightlines in Crypto: A Case Study of Newly Released Ether ETFs Vs. Bitcoin Futures ETFs

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A vision of a scale balancing gold and silver coins, representing Bitcoin and Ether respectively. The gold coins are heavier, tilting the scale towards Bitcoin. Set in a vintage stock market environment under soft, warm light. Emphasizing the shift and uncertainty in the cryptocurrency market using pastel tones and Impressionist art style. Mood: Intrigue, caution.

Following the much-anticipated debut of Ether futures-based exchange-traded funds (ETFs) on Monday, crypto analysis firm K33 Research sparked a conversation about the potential need for investors to shift their sights from ETH to BTC. The newly released ETFs, from VanEck, ProShares, and Bitwise, managed to collect a mere $8.5 million in assets under management (AUM) on their first day. This stands in stark contrast to the impressive $576.5 million in AUM acquired by Bitcoin futures ETFs on their debut day in 2021.

There was a noticeable decrease in the excitement building for the ETFs that resulted in significantly higher Ether futures premiums. However, this quickly dissipated following less than ideal results. Worse yet, the Ether ETFs did not intervene with the continuous decline of Ether’s value compared to Bitcoin, a trend that has been ongoing for more than a year.

K33 Research analysts, Vetle Lunde and Anders Helseth, highlighted how the emergence of regulated Bitcoin futures contracts on the CME exchange in the US in 2017 offers a useful comparison. Institutional investors did not immediately jump aboard the Bitcoin futures market. Instead, it took them years to warm up to it, a trend that starkly contrasts the rapid adoption of Bitcoin futures ETFs last year.

From this perspective, the analysts hinted that it might be the right time to redirect investments from Ether to Bitcoin. “We no longer see a strong bull case for ETH/BTC in the short term,” they elaborated.

However, an interesting split prevails in the trading world about the future of the crypto market. Futures market data leans towards a bearish sentiment, while data from options parties suggest a liking for bullish call options, painting a rather uncertain picture of the road ahead.

This latest development with Ether futures-based ETFs raises compelling questions for the crypto community. The slow reception for these ETFs stands as testament to the high-level risks and unpredictability of the crypto market. As ever, it remains essential for investors to make informed decisions, keeping the unpredictability and volatility of the crypto market in mind.

Source: Cryptonews

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