For several years, the market has been eagerly awaiting better exchange-traded funds (ETFs) for cryptocurrencies. It seems that the launch of the so-called spot ETFs is finally getting closer, including for Bitcoin (BTC) and Ethereum (ETH). According to crypto research firm K33, Ethereum is even the better investment in this regard.
The SEC still doesn’t want crypto spot ETFs
ETFs for crypto have been around since 2021, but spot ETFs are pretty much non-existent. These exchange funds are not based on crypto futures contracts, but on “real” coins. The existing futures-based ETFs have relatively high commissions that are more actively managed by the people trading the futures contracts. This takes time and effort and therefore more money.
Spot ETFs can change this because these funds can simply hold the coins and don’t need to be actively trading. Currently, the biggest obstacle is the policy makers in the US, particularly the Securities and Exchange Commission. This institute believes that funds can use the construction to manipulate the market.
For this reason, among others, the SEC has so far rejected every application for an ETF. When BlackRock applied for a bitcoin spot ETF, hopes grew that this would change quickly. But this too was suppressed for the time being. Seven US companies applied, but all were rejected.
“Ethereum will outperform Bitcoin”
The focus is heavily on the Bitcoin ETFs awaiting approval, but much less on the Ethereum-based exchange fund applications. This is what the cryptanalysis agency K33 writes in a research report.
There are also several ETF applications in the queue for the second largest cryptocurrency. October 12 is the deadline for one of the futures-based Ethereum ETFs. Admittedly, this isn’t a spot ETF, but it’s reason enough to be more bullish on ETH than BTC in September and October.
According to K33, the ETH/BTC price is also at its lowest level in 2.5 years (read: since May 2021), which would provide ample room for upside compared to Bitcoin. When the first futures-based Bitcoin ETF launched two years ago, the price surged 60% in the last three weeks.