According to the report authored by Head of Research Anders Helseth and Senior Analyst Vetle Lunde, the recently introduced ETFs witnessed trading volumes amounting to only 0.2% of the trading volumes observed for Bitcoin futures ETFs launched in 2021.
The analysts remarked, “Increased institutional access will only generate buying pressure if substantial unmet demand exists, and this is not the case for ETH at the moment.”
The analysts argue that the tepid response bears a closer resemblance to the 2017 CME Bitcoin futures debut rather than the enthusiasm surrounding the 2021 Bitcoin ETFs, which saw immediate institutional interest.
While the approval of the ETF marks a significant long-term milestone for Ethereum, the K33 report suggests reducing exposure to Ether for the time being, waiting for a more favorable overall sentiment and renewed institutional interest.
“We believe it’s prudent to reduce exposure to ETH and shift focus back to BTC,” wrote the analyst.
Both Bitcoin and Ethereum experienced approximately 5% gains over the past week, although they relinquished nearly half of those gains following the disappointing ETF launch.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.