A new report from Kaiko suggests that Ethereum (ETH) might perform better than Bitcoin (BTC) once Ethereum exchange-traded funds (ETFs) launch in the United States.
The report focuses on the ETH to BTC Price Ratio, a key metric that measures the amount of Bitcoin required to purchase one Ethereum.
Right now, this ratio stands at 0.05, marking an increase from the 0.045 before the Securities and Exchange Commission (SEC) approved spot Ether ETFs. This increase hints that Ethereum is getting stronger compared to Bitcoin.
The report also points out Ethereum’s low market depth. Market depth tells how easy it is to buy or sell an asset without causing big price changes. Low market depth means that large trades could cause bigger price swings, potentially helping Ethereum’s price to rise.
Another important factor is the Ethereum Exchange Reserve, which tracks how much Ether is available to buy on exchanges. According to the report, this reserve is at its lowest in years, which could mean a supply shortage is coming. As institutional investors try to fill their new Ethereum ETFs, this low supply could push prices much higher.
Additionally, the launch of spot Ethereum ETFs is generating considerable anticipation in the cryptocurrency space. According to Bloomberg’s analyst James Seyffart, the SEC has requested applicants to submit amended S-1 forms by July 16, potentially setting the stage for a July 23 launch date.
Also Read: Bloomberg Analyst Announces Ethereum ETF Potential Launch Date
