K33 Research Advises: It’s Time to Pivot Back to Bitcoin

Research firm K33 stated in the report submitted by its analysts that the Ethereum ETFs launched at the beginning of the week did not find the expected interest and this was a signal of return to Bitcoin.

Ether futures ETFs launched on Monday were disappointing compared to the launch volume of Bitcoin futures ETFs in 2021. Ethereum ETFs, which fell behind Bitcoin in terms of transaction volume, did not see the expected demand.

However, Ethereum and Bitcoin prices were not affected by this situation. Both cryptocurrencies were only able to increase by 5% last week.

Why Did Ether Futures ETFs Fail to Meet Expectations?

K33 Research team recommended investors return to Bitcoin due to Ethereum’s poor performance compared. According to analysts, this shows that there is no strong upward expectation between ETH/BTC in the short term.

“We believe it’s time to pull the breaks on ETH and rotate back into BTC. We no longer see a strong bull case for ETH/BTC in the short term.”

The introduction of Ethereum futures ETFs by major companies such as VanEck, ProShares, and Bitwise was met with great excitement. But these ETFs paled in comparison to the initial launch volume of Bitcoin futures ETFs.

Analysts pointed out that while Bitcoin collected $576.5 million in assets post-launch, Ethereum collected only $8.5 million.

Dwindling Institutional Attention: A Main Contributor

Lunde and Helseth analysts noted that the launch of Ethereum futures ETFs did not result in a stronger-than-expected outflow among CME investors. This shows that the interest of institutional investors is not fully in this area.

Analysts say they believe in the long-term potential of Ethereum, and despite insufficient liquidity, they believe that this liquidity problem can be quickly resolved if the general market sentiment changes positively.

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