Ethereum Set to Outshine Bitcoin Post Spot ETF Launch, Predicts Kaiko

A recent Kaiko report suggests that Ethereum (ETH) may surpass Bitcoin (BTC) in performance following the upcoming launch of spot Ethereum ETFs.

The report highlights the ETH/BTC Price Ratio, which measures the BTC required to buy one ETH. Currently, this ratio stands at 0.05, up from 0.045 before the SEC’s approval of the spot Ether ETFs, indicating a stronger performance for ETH relative to BTC.

The report also points to Ether’s 1% market depth as a potential trigger for a significant ETH price increase. Market depth reflects the liquidity in a market, with lower liquidity leading to higher volatility and higher liquidity stabilizing prices.

The Ethereum Exchange Reserve, which tracks the amount of Ether available on exchanges, is at multi-year lows. This scarcity, driven by institutional demand for the new Ethereum ETFs, could lead to a supply shock and substantially higher prices.

Anticipation for the Ethereum ETFs is high, with analysts predicting a launch in the near future. Bloomberg ETF analyst Eric Balchunas expects the launch by July 23, following the SEC’s request for amended S-1 forms by July 16. Institutional investor Tom Dunleavy forecasts $10 billion in inflows into Ethereum ETFs, at a rate of about $1 billion per month.

Ether’s regulatory status has been a contentious issue. The SEC recently halted its investigation into Ethereum, likely to avoid embarrassment, according to ConsenSys attorney Laura Brookover. Meanwhile, CFTC Chairman Rostin Behnam has asserted that ETH is a commodity under his agency’s jurisdiction.