Ether May Surpass Bitcoin After Space ETF Launch: Caico
According to a new Caico report, Ether may surpass Bitcoin following the launch of the highly anticipated Ethereum exchange-traded funds (ETFs) in the United States.
The report highlighted the Ether (ETH) to Bitcoin (BTC) price ratio, a metric that measures the amount of BTC needed to buy one ETH. The higher this metric climbs, the higher the price of Ether relative to Bitcoin and vice versa.
Currently, the ratio is at 0.05, compared to 0.045 before the Securities and Exchange Commission (SEC) approved the Ethereum ETF.
Ether's 1% market depth was also cited in the report as a catalyst for the upcoming ETH bull run. Market depth measures the amount of liquidity in a market. Low cash in assets translates into high volatility, while high liquidity stabilizes market prices when it comes to large orders.
This low market depth is supported by Ethereum Exchange Reserve, a metric that tracks the amount of Ether available for purchase on exchanges, which is at multi-year lows and could indicate a supply shock driven by institutional demand, which is likely. Sending prices significantly.
Ethereum ETF is soon.
All eyes are on the launch of the Ethereum ETF, which analysts say may happen soon. Senior Bloomberg ETF analyst Eric Balchunas continues to predict a July launch window. According to Balchunas, the SEC asked filers to file amended S-1 forms by July 16 ahead of the July 23 start date.
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Institutional investor Tom Dunleavy recently told Cointelegraph that he believes Ethereum ETFs will see $10 billion in revenue at a rate of $1 billion per month.
Regulatory controversy
Ether's status as a commodity or security is hotly debated in regulatory circles. In June, the SEC dropped its investigation into the smart contract protocol, possibly to avoid embarrassment, according to Conseis attorney Laura Brookover.
Recently, Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), argued that ETH is a commodity and falls under the agency's terms.
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