Despite Spot Ethereum ETF Approval Expectations, Investors Prefer Bitcoin! Here’s Why!

Despite Spot Ethereum ETF Approval Expectations, Investors Prefer Bitcoin! Here’s Why!

While all eyes are on Ethereum ETFs after the SEC’s approval of spot Bitcoin ETFs, analysts are divided on the approval.

While some analysts, such as Standard Chartered analysts, believe that the SEC will approve ETH ETFs in a short time and the price will increase, some analysts believe that due to some ongoing lawsuits in the USA and the SEC’s failure to clearly explain whether ETH is a security or a commodity. He thinks ETH ETF approval may be delayed.

As you may recall, Standard Chartered claimed in a recent report that Ethereum could rise to $4,000 in the next three months and potentially outperform Bitcoin as the SEC may approve ETH ETFs.

Standard Chartered analysts are now joined by Blofin analyst Griffin Ardern.

According to Coindesk, Blofin analyst Griffin Ardern said that based on his analysis of BTC and Ethereum futures, investors expect Ethereum to underperform Bitcoin in the coming months.

Stating that at this point, the forward-term structure of ETH / BTC is trending downwards, Ardern stated that this trend is an indicator that investors prefer Bitcoin to Ethereum.

“ETH/BTC ratio rose 17% to 0.059 days after the SEC gave the green light to spot Bitcoin ETFs.

Ethereum’s outperformance was primarily driven by hopes that the regulator would soon approve Ether spot ETFs. Although these hopes remain alive, the ETH/BTC rate has since fallen to $0.053.

The downward sloping nature of BTC/ETH means that investors expect ETH to perform weaker than BTC as time goes by.

This shows that investors are relatively more optimistic about BTC’s performance.

“Futures traders are concerned about the SEC’s inability to decide whether ETH is a security or a commodity, which is seen as a significant obstacle to spot Ethereum ETFs.”

*This is not investment advice.

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