Researcher Suggests Buying ETH Over BTC Ahead of Potential SEC ETF Approval

Analysts are increasingly optimistic about the SEC's approval of Ethereum ETF futures registrations.

Researcher Suggests Buying ETH Over BTC Ahead of Potential SEC ETF Approval

According to crypto market analysis firm K33 Research, Ethereum (ETH) may experience superior growth compared to Bitcoin (BTC) following the Securities and Exchange Commission (SEC) approval expected by mid-October.

Analyst Vetle Lunde of K33 explains that ETH prices could benefit from the SEC "greenlighting" ETF futures registrations, potentially preceding Bitcoin ETF futures. He references a previous 60% surge prior to the first Bitcoin ETF futures approval two years ago.

In mid-August, Bloomberg reported high prospects of SEC approval for recent Ethereum ETF futures proposals, including those from Volatility Shares, Bitwise, Roundhill, VanEck, Grayscale, Direxion, ProShares, and Valkyrie. However, these reports remain unconfirmed.

The SEC has historically only approved Bitcoin futures ETFs in October 2021 and continues to reject spot ETFs, citing inadequate investor protection policies for retail investors.

Meanwhile, analysts view Bitcoin spot ETFs positively, with a projected 75% approval rate following Grayscale's recent success against the SEC. Even if unsuccessful this year, analysts forecast a 95% chance of a Bitcoin spot ETF by late 2024.

Lunde remarks, "The market seems to undervalue the potential impact of a Bitcoin spot ETF. Approval of immediate-settlement ETFs will attract external capital, generating significant buying pressure for BTC. Conversely, a rejection of Bitcoin spot ETFs will likely see little change."

Turning back to ETH futures ETFs, the SEC has deadlines from October 11-17 to decide on approvals, rejections, or delays for these registrations. This period is crucial for investors as it will impact asset prices.

Timeline for crypto-related ETFs in October (Bloomberg/K33 Research)

ETH is currently priced at $1,629, recovering from a low of $1,550 on August 18, the lowest since March 2023.

Price volatility of ETH on the 1D timeframe on Binance