The Imminent Approval of Spot Ethereum ETFs Could Catalyze Ether\'s Performance Relative to Bitcoin

This is the conclusion of a recent analysis by Kaiko, as the crypto sector eagerly awaits the SEC's green light for these new investment vehicles.

The upcoming approval of spot Ethereum ETFs could boost Ether's performance against Bitcoin, according to a recent analysis by Kaiko, as the crypto industry awaits the SEC's green light for these new investment vehicles.

A bullish momentum for Ether

The ETH/BTC price ratio, a key indicator of Ether's relative strength against Bitcoin, has been showing positive signs. This ratio, currently at 0.05, has already risen since the SEC's announcement on spot Ethereum ETFs. An increase in this indicator would suggest a better performance of ETH against BTC.

The shallow market depth for Ether, at 1%, could amplify this dynamic. This metric, which reflects the available liquidity, suggests that an increase in demand could have a significant impact on prices.

"ETH's shallow market depth makes it more sensitive to price movements," said Clara Medalie, an analyst at Kaiko. "An influx of capital through spot ETFs could lead to a rapid and sharp increase."

This analysis is also supported by the historically low levels of Ether reserves on exchanges. This phenomenon, which is synonymous with a scarcity of supply, could accentuate the upward pressure on prices in the event of strong institutional interest.

The countdown to Ethereum ETFs

Industry expectations point to a quick launch of the spot Ethereum ETFs, with Eric Balchunas, a senior Bloomberg analyst, suggesting a window around July 23. He уточнил:

"The SEC asked issuers to file their amended S-1s by July 16, which suggests a potential launch as early as the following week."

Predictions are optimistic regarding the adoption of these new products, with Tom Dunleavy, an institutional investor, expecting a massive capital inflow:

"We expect to see about $10 billion flow into Ethereum ETFs in the first year, which would be almost $1 billion per month."

This positive momentum for ETH aligns with a broader context of growth for the crypto sector, as evidenced by Ethereum's recent dominance in blockchain revenue, generating $2.728 billion compared to Bitcoin's $1.302 billion.

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