Ether Could Outperform Bitcoin Following the Launch of the Spot Ethereum ETFs, Kaiko Report Says

The report highlighted the Ether (ETH) to Bitcoin (BTC) Price Ratio, a metric that measures the amount of BTC required to purchase one ETH.

Fresh out of the Kaiko oven is a report suggesting that Ether (ETH) might outpace Bitcoin (BTC) following the launch of the highly anticipated Ethereum exchange-traded funds (ETFs) in the United States.

The report bakes in the Ether (ETH) to Bitcoin (BTC) Price Ratio, a metric that measures the amount of BTC needed to buy one ETH. The higher this metric climbs, the higher the price of Ether relative to Bitcoin and vice versa.

Currently, the ratio sits at 0.05, up from the 0.045 recorded before the Securities and Exchange Commission (SEC) approved the spot Ether ETFs.

The report also highlights Ether’s 1% market depth, which could potentially fuel an upcoming ETH bull run. Market depth measures the liquidity available in a market. Less liquidity in an asset equates to higher volatility, whereas more liquidity stabilizes market prices amid large orders.

This low market depth is further supported by the Ethereum Exchange Reserve, a metric tracking the amount of Ether available for purchase on exchanges, which is at multi-year lows and could indicate an incoming supply shock driven by institutional demand to fill their Ethereum ETFs, potentially driving prices up significantly.

With the approval of spot Ether ETFs, all eyes are now on their launch, which analysts anticipate could happen sooner rather than later. Senior Bloomberg ETF analyst Eric Balchunas maintains his prediction of a July launch window. According to Balchunas, the SEC has requested that applicants submit amended S-1 forms by July 16 ahead of a potential July 23 launch date.

Institutional investor Tom Dunleavy recently shared his anticipation with Cointelegraph, stating that he expects the Ethereum ETFs to garner $10 billion in inflows at a rate of roughly $1 billion per month.

Ether’s classification as a commodity or a security has been a subject of intense debate within regulatory circles. In June, the SEC reportedly dropped its investigation into the smart contract protocol to avoid embarrassment, according to Consensys attorney Laura Brookover.

More recently, Rostin Behnam, the chair of the Commodities Futures Trading Commission (CFTC), asserted that ETH is a commodity and falls under his agency’s jurisdiction.

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