Ethereum’s Price Vs. Bitcoin: Can Upcoming ETH Futures-Based ETFs Turn The Tables?

Samuel Edyme

1 year ago

3 mins read

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The Ethereum price is hovering around yearly lows compared to the dominant cryptocurrency, Bitcoin. This decline, notable since September 2022, has brought ETH to trade as low as $1,594 at the time of writing.

However, amid the concerns about Ethereum’s notable plunge, there are hints of a potential trend reversal, according to the latest report from crypto research firm K33 Research.

Ethereum Price Declines, Underlying Reasons

K33 Research, a renowned figure in the crypto analytical space, has been closely monitoring the relationship between Ethereum and Bitcoin. Their recent findings highlight a palpable drift in the market’s preferences between these two titans.

Ethereum and Bitcoin (ETH/BTC) price chart. | Source: K33 Research.

Ethereum’s native token is under strain, hovering at a trading value near 0.06 Bitcoin. This trend traces back to a pivotal moment in Ethereum’s timeline – its transition from proof-of-work to proof-of-stake consensus, a migration dubbed “The Merge.”

However, Ethereum’s trajectory isn’t solely a product of its internal variation. External market factors have also played their part. The Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) sectors have seen their buzz quiet down, which has indirectly cast a shadow over Ethereum’s performance.

Lunde, a Senior Analyst with K33, alongside Vice President Anders Helseth, reflected on this scenario in their recent report. The analysts pointed out:

Ether has experienced a steady downward trend throughout the year as DeFi and NFT activity has faded. Without any meaningful narratives or adoption stories, ether has struggled to maintain strength versus bitcoin

Market Sentiments And Potential Catalysts

Furthermore, insights from Chicago Mercantile Exchange (CME) derivative traders reveal a bearish sentiment towards Ethereum. According to the report, despite a notable 60% surge in open interest since August, the disparity between ETH futures prices and its spot remains considerably lower than that of Bitcoin.

Lunde and Helseth interpret this data to suggest that expectations of potential ETH futures ETFs being approved in the forthcoming weeks failed to gain the attention of the CME Ethereum traders.

However, not everything appears grim for Ethereum. Despite the bearish landscape, analysts at K33 are optimistic about a shift as the year ends. According to the report, the potential approval of new Ethereum futures-based Exchange Traded Funds (ETFs) could reverse this trend.

Such financial products could infuse new vigor into the market, attracting more institutional interest and potentially driving Ethereum’s value against Bitcoin. If approved, they could not only bolster the confidence of existing investors but might also lure new participants to the ETH platform.

Meanwhile, Ethereum and Bitcoin have seen losses over the past week. Ethereum has been down 2.1% with a current trading price of $1,591, and Bitcoin is down by 3.7% with a current price of $26,212.

Ethereum (ETH) price chart on TradingView — Ethereum (ETH) price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com

Featured image from Shutterstock, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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