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- 1 Ethereum futures ETFs have not performed up to the expectations since launch.
- 2 A recent report found that it could be Bitcoin’s charm that is not letting Ether shine.
Research firm K33 Research brought up another report citing Ethereum’s performance as lagging despite the recently launched nine ETF futures. Despite the ETFs being launched in abundance, the trading volume for Ethereum-based financial products was not even a percent in comparison to Bitcoin futures ETF.
The report from K33 Research released on October 10th noted that higher premiums in Bitcoin-based products made it a more lucrative option for investors to choose over financial products with Ethereum as an underlying asset. Senior Analyst Vetle Lunde and Vice President Anders Helseth at K33 Research prepared the report.
For almost a year now, the second biggest cryptocurrency has been trading at humble levels without making frequent and notable moves. While the flagship cryptocurrency Bitcoin (BTC) did fairly well, yet to make some substantial moves though. A similar pattern was visible with ETFs of both crypto assets.
The authors explained the situation in the report noting that Bitcoin is often likened to digital gold and tends to be favored as a safe-haven asset. Additionally, the potential introduction of spot Bitcoin Exchange-Traded Funds (ETFs) can make Bitcoin even more appealing in traditional financial markets.
In contrast, Ethereum, while associated with decentralized finance (DeFi) and non-fungible tokens (NFTs), might be seen as having a higher risk profile in comparison to Bitcoin. These factors can contribute to Bitcoin’s preference in a risk-averse climate, it added.
Ethereum’s Struggling Phase While Bitcoin Performs Fine
Ethereum (ETH) and other altcoins have faced challenges in the spot market, characterized by low trading volume and decreasing volatility for Bitcoin. The launch of Ether futures Exchange-Traded Funds (ETFs) didn’t perform as expected, leading to underperformance of Ether in comparison to Bitcoin.
ETH’s underperformance reached a 14-month low of $0.057, declining by 5% in U.S. dollar terms over the past week. Bitcoin also exhibited stagnation, with a 0% change over the same period, although its market dominance is on the rise, nearing multi-year highs.
Bitcoin’s dominance across the global crypto market stays around 50% as it trades at $26,774 after losing 3.5% of its value in the last seven days. Ethereum (ETH) dominance in the market is at 17.8% and is trading at $1,548 following a decline of up to 5% in a similar timeframe.
Picture Not As Gloomy Due to Certain Silver Linings
There are some positive indicators in the cryptocurrency derivatives market. CME next month’s premium and offshore funding rates for Bitcoin perpetual contracts have been on an upward trend in the past week. Additionally, the 6-month Bitcoin options skew suggests strong demand for call options.
However, the overall sentiment in the derivatives market is not overwhelmingly bullish. Offshore funding rates remain consistently below neutral and outflows from Bitcoin futures ETFs indicate a more cautious stance among investors. These mixed signals suggest a degree of uncertainty in the market, the report noted.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
