ETH Could Outperform BTC When Spot ETF Launches, Says Research

IconCryptoNewsTerminal Staff15 Jul, 2024

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ETH Could Outperform BTC When Spot ETF Launches, Says Research

The price of ether (ETH) could outperform bitcoin (BTC) following the launch of a spot ETF in the United States, according to a recent report by on-chain analytics firm Kaiko. The report notes that the ETH to BTC price ratio, a measure of how much BTC is needed to buy one ETH, is currently hovering around 0.05, slightly higher than the 0.045 it was trading at when the U.S. Securities and Exchange Commission (SEC) approved the first bitcoin futures ETF. The potential launch of an ETF could see this ratio "jump substantially," the report says. "Moreover, given the current relatively low 1% market-cap-to-exchange-volume ratio for ETH, a supply shock driven by increased institutional demand could also send the price of ETH sharply higher." ```

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