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Analysts at crypto research firm K33 – formerly Arcane Research – claim that the potential for the approval of a spot bitcoin (BTC) exchange-traded fund (ETF) to prop up prices is dramatically underestimated by the crypto market.
In a September 5 market report, K33 senior analyst Vetel Lunde and vice president Anders Helseth said that the chances of spot bitcoin ETF approval have improved significantly over the past three months, but this sentiment was not reflected in the price of bitcoin or other major cryptos. Is. properties.
The analyst explained that bitcoin has given up all of its gains in the wake of Grayscale’s legal victory at the Securities and Exchange Commission, but an approval would “attract huge inflows” and significantly increase the buying pressure for bitcoin.
Bitcoin returns its gains after Grayscale’s win. Source: K33 Research
However, the downside of a potential spot ETF rejection would be “negligible” and bitcoin prices would continue to trade normally, he wrote.
Lunde and Helseth said that given the growing likelihood of spot ETF approval — several Bloomberg analysts now predict a 75% chance of approval within the year — the market’s outlook on ETFs is fundamentally wrong.
“I firmly believe that the market is wrong. By all accounts, this is a buyer’s market, and it would be negligent not to accumulate BTC aggressively at current levels.
Strengthening their bullish forecast, analysts saw a recent 2% gain in the tech-heavy Nasdaq-100 index, which is often seen as an indicator of the broader market’s risk appetite.
ETH Poised To Outperform BTC
Additionally, Lunde and Helserth shared their optimism for the price of ether (ETH), explaining that ETH is likely to outperform bitcoin over the next two months as it is expected to gain momentum ahead of futures-based ETF listings. would benefit.
Connected: BTC Bull Run Started in March, Will Realize More in a Year – Arthur Hayes
He explained that ether could track a similar path to bitcoin, which gained nearly 60% in the weeks leading up to the launch of the first bitcoin futures-based ETF on October 19, 2021.
A decision on the futures-based ether ETF is set to be announced in mid-October, which will reportedly get the go-ahead from the SEC.
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