Ethereum could outperform Bitcoin after the launch of spot ETFs in the US. This is according to a new Kaiko report. The launch could happen as soon as July 23.
The report focuses on the Ethereum to Bitcoin Price Ratio. This metric measures how much BTC you need to buy one ETH. Right now, it's at 0.05. That's up from 0.045 before the SEC greenlit spot Ether ETFs.
Ethereum's 1% market depth is another factor to watch. It's pretty low at the moment. This could lead to higher volatility. But it could also fuel a bull run.
The Ethereum Exchange Reserve is at multi-year lows. This metric tracks how much Ether is available on exchanges. Low reserves could signal a supply crunch coming.
Institutional demand for Ethereum ETFs might drive prices up. It's a big deal. Eric Balchunas, a Bloomberg ETF analyst, predicts a July launch. He says the SEC asked for amended S-1 forms by July 16.
Tom Dunleavy, an institutional investor, has some bold predictions. He told Cointelegraph he expects $10 billion in inflows. That's roughly $1 billion per month.
Ethereum's regulatory status has been a hot potato. Is it a commodity or a security? The SEC dropped its investigation into Ethereum in June. Laura Brookover, a Consensys attorney, reckons they did it to save face.
The CFTC has thrown its hat in the ring too. Its chairman, Rostin Behnam, argues that ETH is a commodity. He thinks it falls under his agency's jurisdiction.
All this buzz is creating a perfect storm for Ethereum. Low liquidity, potential ETF approval, and regulatory clarity could send prices soaring. But as always in crypto, it's anyone's guess.
Investors are on the edge of their seats. July 23 could be a game-changer for Ethereum. Will it live up to the hype? Only time will tell.