Analysts at crypto research firm K33, previously known as Arcane Investigate, claim the crypto market intensely undervalues the potential of a spot Bitcoin (BTC $25,753) exchange-traded fund (ETF) approval to increase prices.
Last September 5, some experts claimed that the second quarter of the year had significantly enhanced the probability of a spot Bitcoin ETF getting approved despite this feeling is not reflected in the price of Bitcoin or other major crypto assets.
Vetle Lunde and vice president Anders Helseth from crypto research firm K33 explained that although Bitcoin had virtually lost all of its gains after Grayscale’s legal victory over the Securities and Exchange Commission, an approval would “attract a lot of money” and significantly increase buying pressure on Bitcoin.
Nevertheless, they argued that the downside of a possible rejection of a spot ETF would be “negligible” and Bitcoin prices would basically carry on as usual.
Now, according to several Bloomberg analysts predicting a 75% probability of approval within the year, and the analysts Lunde and Helseth stating that given the increased probability of spot ETF approvals, the market outlook on ETFs is basically wrong.
“I firmly believe the market is wrong. This is, by all accounts, a buyer’s market, and it’s reckless not to aggressively accumulate BTC at current levels.”
To back up their bullish prediction, analysts looked at the recent 2% gain in the Nasdaq-100 Index, which is often seen as an indicator of market risk appetite in general.
ETH Set to Beat BTC
The Ether (ETH) price will benefit from a strong impetus ahead of a futures-based ETF, according to Lunde and Helserth. He states that ETH seems set to beat Bitcoin
They explained that Ether could follow a comparable path to Bitcoin, which gained roughly 60% in the weeks leading up to the launch of the first ETF based on Bitcoin futures on October 19, 2021.
The verdict on an Ether futures ETF is expected to be delivered in mid-October, which will reportedly garner SEC approval.
By Leonardo Pérez
