Crypto News – Standard Chartered predicted a week ago that Ether might reach $4,000 in the next three months, surpassing Bitcoin, since in May the SEC might authorize spot ETFs linked to ETH.
Ether versus Bitcoin: Investors Choose BTC Despite Spot ETH ETF Possibility
However, futures data indicates that traders are still more inclined to favor bitcoin than ether because they believe the Ether-Bitcoin (ETH/BTC) ratio will continue to decline in the coming months.
Data recorded by cryptocurrency asset management company Blofin indicates that the ETH/BTC forward term structure, which is determined as the ratio between prices for Ether futures and Bitcoin futures over various maturities, has been sloping downward.
The downward sloping structure is backward, which means that traders expect ETH to perform weaker than BTC as time goes by. This shows investors are relatively more bullish on BTC’s performance.
Griffin Ardern, Blofin volatility trader
ETH/BTC Ratio Continues to Fall
The ratio of the ETH to BTC increased by 17% to 0.059 just a few days after the SEC approved the spot bitcoin ETFs. The main reason for Ether’s outperformance was optimism that Ether spot ETFs would soon be approved by the regulator. The ETH/BTC ratio has since dropped to $0.053, despite the fact that those hopes are still alive.
The SEC’s classification of ether as a security or commodity may worry futures dealers. The absence of any reference to ether in the SEC‘s mid-2023 action against Binance and Coinbase for breaking securities legislation has persuaded investors that cryptocurrency will be recognized as a commodity, which is a prerequisite for the establishment of spot ETFs.
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