K33 Research: Ethereum continues to underperform Bitcoin

Crypto market analysis January 2023, Ethereum update - Shanghai
Crypto market analysis January 2023, Ethereum update - Shanghai

Traders continue to favor Bitcoin due to higher futures premiums amid expectations of spot ETF approvals. This is the conclusion reached by K33 Research.

Data: K33 Research.

The lack of excitement around the launch of Ethereum futures ETFs has led to a decline in the ETH/BTC ratio, to 0.057, at least in 14 months. Bitcoin’s dominance level is approaching two-year highs.

Data: K33 Research.

“[Расхождение в размере премий между активами] may be that Bitcoin […] with the potential for spot ETFs to emerge soon, is more attractive than Ethereum linked to DeFi and NFTs. Prefer digital gold until there are clear signs sparks in the second largest cryptocurrency by capitalization, it is probably the safest [тактикой] for now”, – they noted.

Analysts indicated they do not expect filing SEC appeal the decision in Grayscale’s lawsuit by the October 13 deadline. In this case, the court will most likely instruct the regulator to review the company’s application for conversion GBTC into a spot Bitcoin ETF.

Experts are confident that the development of the situation around Grayscale could lead to a strong market reaction in the short term. After that, the focus will shift to the next deadlines for applications for spot Bitcoin ETFs from BlackRock, Fidelity, VanEck and Invesco.

Experts noted growing optimism in the derivatives market. In particular, awards for CME Over the next month, funding rates also increased, and the rising volatility slope in six-month Bitcoin options indicates robust demand for calls. However, overall they described the mood as cautious.

“Bitcoin futures five-day volatility was 9.4%—the second-highest in 2023—accompanied by changes in CME premiums. The increased activity did not result in any significant directional impulse.” – the experts explained.

A week ago, K33 Research recommended that investors redirect capital from the second to the first cryptocurrency by capitalization.

Recall that Standard Chartered analyst Jeffrey Kendrick predicted Ethereum at $8,000 by the end of 2026.

Let us recall that ex-BlackRock director Stephen Schonfield suggested that the SEC would approve the instrument within three to six months.

Found an error in the text? Select it and press CTRL+ENTER

ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!

Leave a Reply