Crypto market ‘dramatically underestimates’ bullishness of spot Bitcoin ETFs

The imaginable of a spot Bitcoin (BTC) exchange-traded money (ETF) support to thrust prices up is dramatically underestimated by the crypto market, assertion analysts from crypto probe steadfast K33 — formerly Arcane Research. 

In a Sept. 5 marketplace report, K33 elder expert Vetle Lunde and vice president Anders Helseth said the past 3 months had greatly improved the chances of a spot Bitcoin ETF support contempt the sentiment not being reflected successful the terms of Bitcoin oregon different mainstay crypto assets.

The analysts explained portion Bitcoin had each but fixed up its gains successful the aftermath of Grayscale’s ineligible triumph implicit the Securities and Exchange Commission — an support would “attract tremendous inflows” and importantly summation buying unit for Bitcoin.

Bitcoin returned its gains successful the aftermath of Grayscale's victory. Source: K33 Research

However, the downside of a imaginable spot ETF rejection would beryllium “negligible” and Bitcoin prices would simply support concern arsenic usual, they wrote.

Lunde and Helseth added that fixed the accrued likelihood of spot ETF approvals — with respective Bloomberg analysts present predicting a 75% accidental of approval wrong the twelvemonth — the market's outlook connected ETFs is fundamentally incorrect.

“I firmly judge the marketplace is wrong. This is, by each accounts, a buyer’s market, and it’s reckless not to aggressively accumulate BTC astatine existent levels.”

Bolstering their bullish prediction, the analysts looked to the caller 2% summation successful the tech-heavy Nasdaq-100 index, often viewed arsenic an indicator of the broader market's hazard appetite.

ETH acceptable to outperform BTC

Additionally, Lunde and Helserth shared their optimism for the terms of Ether (ETH), explaining that ETH appears apt to outperform Bitcoin implicit the adjacent 2 months arsenic it volition payment from beardown momentum up of a futures-based ETF listing.

Related: BTC bull marketplace began successful March, much volition recognize successful a twelvemonth — Arthur Hayes

They explained Ether whitethorn way a akin way to Bitcoin which gained astir 60% successful the weeks starring up to the motorboat of the archetypal Bitcoin futures-based ETF connected Oct. 19, 2021.

The verdict connected a futures-based Ether ETF is slated to beryllium handed down successful mid-October which is reportedly acceptable to get the greenish light from the SEC.

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