Ethereum Futures ETFs Underperform, Analysts Suggest Shift Back to Bitcoin

Analyst Insights: The Call to Rotate

According to K33 Research analysts Anders Helseth and Vetle Lunde, the underwhelming performance of Ether futures has prompted a shift in strategy. They emphasize that it might be time to “pull the brakes” on ETH and refocus attention back to BTC. Ether’s initial trading volume didn’t surprise experts entirely, given that the Bitcoin ETFs launched during a robust bull market, but the stark contrast is still alarming.

Lessons from the Ether ETF Launch

Lunde pointed out a crucial lesson stemming from the muted response to the Ether ETFs: merely providing easier access to crypto doesn’t guarantee increased buying pressure. He noted, “Increased institutional access will only create buying pressure if significant unsatiated demand exists.” Unfortunately, in the current landscape for ETH, such demand is nowhere to be seen.

Market Trends and Future Predictions

Delving deeper into the market dynamics, Lunde remarked that the crypto landscape lacks significant price catalysts, which will likely lead to further sideways movement in the coming weeks. The focus now seems to rest on Bitcoin, which has upcoming events, like the potential spot ETF approval and the much-anticipated halving event set for mid-April.

Macro Influencers and Bitcoin’s Resilience

Adding a layer of complexity to the analysis, Ben Laidler, a global markets strategist at eToro, highlighted macroeconomic factors influencing crypto prices. In his emailed comments, he noted, “The Fed and oil prices have been consistently powerful macro influencers on the crypto market.” With oil prices on the rise, even seasoned investors might need to brace themselves for potential volatility ahead.

Short-Term Views vs. Long-Term Hope

While some experts express a cautious standpoint, others remain hopeful. Laidler hints at a positive shift in sentiment only if the market receives some encouraging news. However, the prevailing view signals that Bitcoin’s trajectory seems to be the most promising, with an eye on future developments that could ignite a bullish phase.

The Bottom Line

For now, it appears that the “gravitational pull” in the crypto market is firmly anchored to Bitcoin, accentuating the ongoing debate: is it time to reconsider ETH in your portfolio? Only time will tell, but for those with a penchant for risk, aggressive accumulation of BTC might just be the answer to weathering the choppy waters ahead.