The cryptocurrency market is “dramatically underestimating” the bullishness of spot bitcoin ETFs

The possibility of instant approval from a Bitcoin (BTC) exchange-traded fund (ETF) to raise prices has been greatly underplayed by the cryptocurrency market, analysts from cryptocurrency research firm K33 – Arcane Research previously said.

On the 5th of September market a reportK33 Senior Analyst Vitel Lund and Vice President Anders Helseth said that the past three months have greatly improved the chances of approval of a Bitcoin ETF, but that sentiment has not been reflected in the price of Bitcoin or other underlying crypto assets.

Analysts explained that although Bitcoin gave up its gains in the wake of Grayscale’s legal victory over the SEC, the approval would “attract massive inflows” and significantly increase Bitcoin buying pressure.

Bitcoin has regained ground in the wake of Grayscale’s victory. Source: K33 research

However, the downside of potential spot ETF rejections would be “negligible” and bitcoin prices would simply maintain business as usual, they wrote.

Lund and Helseth added that given the increased likelihood of instant approvals for ETFs — with many Bloomberg analysts now projecting a 75% chance of approval within the year — market predictions for ETFs are fundamentally incorrect.

“I firmly believe that the market is wrong. This is, by all accounts, a buyer’s market, and it would be reckless not to accumulate Bitcoin aggressively at current levels.

To bolster their bullish outlook, analysts looked to the recent 2% gain in the tech-rich Nasdaq 100, which is often seen as an indicator of risk appetite in the broader market.

ETH is set to overtake BTC

Additionally, Lundy and Hilsworth were optimistic about the price of Ethereum (ETH), stating that Ethereum is likely to outperform Bitcoin in the next couple of months, as it will benefit from strong momentum before listing futures-based ETFs.

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They explained that Ethereum could follow a similar path to Bitcoin, which rose by nearly 60% in the weeks leading up to the launch of its first Bitcoin futures-based ETF on October 19, 2021.

Judgment on the futures-based Ether ETF is due in mid-October, which is reportedly set to get the green light from the SEC.

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