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Time to Rotate from Ethereum to Bitcoin Says New Research Report

New Ether ETFs struggle to attract institutional interest.

Time to Rotate from Ethereum to Bitcoin Says New Research Report

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A new report from crypto brokerage firm K33 Research recommends reducing exposure to Ethereum in favor of Bitcoin after the muted launch of Ether futures ETFs last week.

According to the report by Head of Research Anders Helseth and Senior Analyst Vetle Lunde, the freshly launched ETFs saw trading volumes reaching just 0.2% of the trading volumes seen for Bitcoin futures ETFs launched in 2021.

“Increased institutional access will only create buying pressure if significant unsatiated demand exists. This is not the case for ETH at the moment,” the analysts wrote.

The analysts argue the lukewarm response has more similarities to the 2017 CME Bitcoin futures debut than the excitement around 2021’s Bitcoin ETFs, which saw immediate institutional demand.

While the ETF approval represents a long-term watershed moment for Ethereum, the K33 report suggests reducing elevated Ether exposures for now until broader sentiment improves and institutions show renewed interest.

“We believe it’s time to pull the brakes on ETH and rotate back into BTC,” the analyst wrote.

Bitcoin and Ethereum both rose around 5% over the past week, though gave back nearly half of their gains leading to the disappointing ETF launch.

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