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Subpar Performance of Newly Launched Ether Futures ETFs
According to the K33 Research analysts, the uninspiring performance of the recent Ether (ETH) futures ETFs is reason enough to consider an exit strategy back into Bitcoin (BTC). Anders Helseth and Vetle Lunde, the researchers at K33, delivered the market report on October 3rd and advised that the prudent move in these circumstances would be to “pump the brakes on ETH and navigate again towards BTC”.
They based their suggestion on the fact that Ether futures ETFs, on their debut trading day, represented a minuscule 0.2% of the volume ProShares Bitcoin Strategy ETF (BITO) had achieved on its inaugural trading day in the previous month.
ETH ETFs Fail to Meet Expectations
The analysts did acknowledge the fact that the ETH Futures ETFs' trading volume wasn't expected to rival the figures that the BITO ETF did, given the market scenario back then. Still, the disappointing geographical numbers significantly fell short of already modest expectations.
This lack of institutional interest in Ether ETFs prodded Lunde to retract his erstwhile recommendation of increasing ETH participation to maximize the possible windfall from the ETF buzz.
Lunde’s Revised Stance and Future Projections
Lunde penned down, "The introduction of ETH futures ETF acts as a critical learning point on appreciating the broader impact of mainstream adoption of crypto assets among traditional investors; the increased accessibility will translate into buying pressure only when a substantial deferred demand prevails".
Lunde, in his segment "Further Disturbances Expected," clarifies that the crypto market at large is devoid of any impactful short-term price determinants and will probably maintain its current lateral movement.
In light of the upcoming potential approval of a Bitcoin ETF and the halving event anticipated in mid-April, Lunde supposes the present scenario to be more advantageous for Bitcoin exclusively.
Other Market Insights
Similarly, Ben Laidler, eToro's global market strategist, predicted a similar course ahead for cryptocurrencies, though with a slightly pessimistic outlook. He illustrated that the ongoing wide-scale trends could exert negative pressure on mainstay digital currencies like Bitcoin.
Considering the past influence on the crypto market, Laidler writes, "The Federal Reserve and oil prices have consistently influenced the crypto markets in recent years. As we are at the end of the rate hike cycle, the market is anticipatory of even better news for a possible surge. But the recent rise in oil prices may dampen the overall market sentiment."
