The relatively lackluster performance of nine new Ethereum futures exchange-traded funds (ETFs) has prompted analysts at K33 Research to urge a “return” to Bitcoin (BTC).
On the market on October 3 ReportAnalysts Anders Helseth and Vetle Lunde say, “It’s time to put the pedal to the metal and move to BTC.” The initial trading volume of the Ethereum Futures ETF only accounted for 0.2% of the ProShares Bitcoin Strategy ETF (BITO) trading volume on the first day of October 2021 trade.
While analysts noted that no one expected the Ethereum futures ETF’s initial trading volumes to be “close to” the Bitcoin futures ETF (launched amid an intense bull run), disappointing first-day volumes were “significantly” below expectations.
The lack of institutional interest in Ethereum ETFs led Lunde to abandon previous recommendations to increase allocations to ETH to take advantage of the ETF hype.
“The launch of the ETH futures ETF provides an important lesson for assessing the impact of greater access to cryptocurrency investments for traditional investors: increased institutional access will only create buying pressure if there is significant unmet demand,” Lunde wrote.
“That’s not the case with ETH right now.”
In a section of the report titled “Moving Further,” Lunde explained that the vast majority of cryptocurrency markets lack any meaningful short-term price catalysts and will likely continue to remain sideways for the foreseeable future.
related: The U.S. Faces a ‘Bear Steep’, A Bitcoin Bull Run Awaits – Arthur Hayes
In Lunde’s view, this situation is only really good for Bitcoin, which is expected to receive ETF approval early next year and whose halving event is expected to take place in mid-April.
“Cryptocurrency’s gravitational pull remains on Bitcoin for the time being, and the future event horizon is promising and remains conducive to positive accumulation.”
Ben Laidler, global market strategist at eToro, painted a similar outlook for crypto assets, albeit with a slightly more bearish sentiment.
In emailed comments to Cointelegraph, Laidler pointed to current macro trends as a trigger for potential downside in the prices of mainstream crypto assets such as Bitcoin.
“The Fed and oil prices have been strong macro influencers in the cryptocurrency market over the past few years,” Lederer wrote. “In the latter stages of the rate hike cycle we are in, the market is looking for further good news to fuel, But with oil prices rising again, that could have a cooling effect on sentiment.”
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