– The market is undervaluing the potential of U.S. spot bitcoin ETFs.
– A spot bitcoin ETF approval could lead to significant buying pressure on bitcoin.
– Grayscale’s legal win resulted in a brief market surge before retracing.
– The Nasdaq 100 has climbed by 2% despite the delayed spot bitcoin ETF proposals.
– Derivatives market sentiment is currently negative but could change quickly.
– Ether exposure appears favorable for September and October.
– Futures-based ether ETFs may get approval in mid-October.
– Ether has stronger ETF momentum in the short term compared to bitcoin.
– Bitcoin and ether ETFs have historically led to significant price rallies.
– Bitcoin is currently less volatile than major stock indices and gold.
Crypto research firm K33 Research believes that the market is undervaluing the potential of U.S. spot bitcoin exchange-traded funds (ETFs). They state that prices “should” have gone up as the approval of a spot bitcoin ETF would attract significant inflows, creating buying pressure on bitcoin. The firm notes that the market is underappreciating this positive news. K33 also highlights Grayscale’s recent legal win in its battle against the Securities and Exchange Commission, which caused a brief market surge. Despite this, the agency delayed several spot bitcoin ETF proposals, leading the market to retract. The research firm points out that the Nasdaq 100 has climbed by 2%, suggesting that the market’s valuation is mispriced given the likelihood of spot ETF approvals.
While sentiment in the crypto derivatives market remains negative, the analysts at K33 Research believe that it could change suddenly. They caution against deriving too much signal from the current derivatives market, as it is pessimistic but lacks conviction. Open interest remains stable, and there have been no significant flows into bitcoin futures ETFs. The options market’s skew, which measures traders’ bullish or bearish inclinations, is volatile.
Regarding ether, K33 Research suggests that September and October favor a greater exposure to the cryptocurrency. They state that futures-based ether ETFs could potentially receive approval in mid-October, as they believe the SEC is ready to greenlight the proposals. With CME’s ether futures operational for over two years and no filings retracted, the analysts believe that approval is likely. They also note that futures-based bitcoin ETFs in 2021 led to a 60% rally in BTC over three weeks. The analysts argue that ETHBTC is currently trading near its 2.5-year lows, making it an attractive buy.
In a previous report, K33 Research stated that bitcoin was now less volatile than the Nasdaq, S&P 500, and gold. They also predicted that a price eruption is imminent.
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