- K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth said in a new report, “This is a buyer’s market – prices ‘should have increased’.”
- While Bloomberg analysts estimate a 75% chance of approval this year, the market seems to be mispriced considering the high probability of spot ETF approvals.
- In 2021, Proshares, Valkyrie, and VanEck’s futures-based Bitcoin ETFs led to a 60% increase in BTC within three weeks.
According to K33 analysts, the cryptocurrency market has underestimated the recent spot Bitcoin ETF news and has not adequately assessed it.
The Potential of Bitcoin ETFs is Still Undervalued!
According to cryptocurrency research firm K33 Research, the market seems to be undervaluing the potential of spot Bitcoin ETFs in the US. K33 Senior Analyst Vetle Lunde and Vice President Anders Helseth said in a new report, “This is a buyer’s market – prices ‘should have increased’.”
Approval of spot Bitcoin ETFs is expected to create significant buying pressure on Bitcoin, attracting “enormous” inflows. On the other hand, a rejection would only maintain the current situation. The analysts added the following statement;
“The market is essentially underestimating major news.”
Grayscale’s recent legal victory in its ongoing battle with the Securities and Exchange Commission led to a short-term market rally of 6% before the institution postponed its seven spot Bitcoin ETF proposals until mid-October.
Meanwhile, the Nasdaq 100 index, often seen as a barometer of market risk appetite, rose by 2%. While Bloomberg analysts estimate a 75% chance of approval this year, the market seems to be mispriced considering the high probability of spot ETF approvals.
Although sentiment remains negative in the crypto derivatives market, analysts noted that funding rates, CME bases, and front-month premiums have been consistently below average since August 15, indicating that this sentiment “can suddenly change.”
The analysts stated, “You shouldn’t read too much into the current derivatives market. It remains stable,” and added, “open positions are steady, and there are no significant flows into Bitcoin futures ETFs.” The skewness of the options market is noticeably variable, serving as an indicator of traders’ bullish or bearish tendencies.
Ethereum Exposure ‘Looks Positive’
K33 Research wrote that it supports more exposure to short-term Ethereum ETF momentum in September and October. It noted that the second-largest cryptocurrency has short-term ETF momentum.
Approval of futures-based Ethereum ETFs could reach a definitive decision in mid-October, according to claims that the SEC is ready to approve proposals. CME’s Ethereum futures have been ongoing for over two years, and since no applications have been withdrawn, analysts believe the tide has turned in favor of approval.
In 2021, Proshares, Valkyrie, and VanEck’s futures-based Bitcoin ETFs led to a 60% increase in BTC within three weeks. Lunde and Helseth argued that ETHBTC trading near its lowest level in 2.5 years at 0.063 has made it a strong relative buying opportunity. Last month, K33 stated that Bitcoin is now less volatile than Nasdaq, S&P 500, and gold, and price fluctuations are “about to explode.”
