Ether could surpass Bitcoin following the launch of the highly anticipated Ethereum exchange-traded funds (ETFs) in the United States, according to a new report from Kaiko.
The report highlighted the Ether (ETH) to Bitcoin (BTC) Price Ratio, a metric that measures the amount of BTC needed to purchase one ETH. The higher this metric climbs, the higher the price of Ether relative to Bitcoin and vice versa.
Currently, the ratio stands at 0.05, compared to 0.045 before the Securities and Exchange Commission (SEC) approved spot Ether ETFs.
Ether’s 1% market depth was also mentioned in the report as a potential catalyst for an upcoming ETH bull run. Market depth measures the amount of liquidity in a market. Lower liquidity in an asset translates to higher volatility, while higher liquidity stabilizes market prices in the event of large orders.
This shallow market depth is supported by the Ethereum Exchange Reserve, a measure that tracks the amount of Ether available for purchase on exchanges. This amount is at multi-year lows and could signal an impending supply shock caused by institutional investors demanding to fill their Ethereum ETFs. This could cause prices to rise significantly.
Ethereum ETF on the horizon
All eyes are on the launch of the spot Ethereum ETFs, which analysts say could happen sooner rather than later. Senior Bloomberg ETF analyst Eric Balchunas continues to predict a July launch window. According to Balchunas, the SEC has asked applicants to file amended S-1 forms by July 16, ahead of a potential July 23 launch date.
Related: Whale Transfers $50 Million in ETH Amid ETF Expectations
Institutional investor Tom Dunleavy recently told Cointelegraph that he expects Ethereum ETFs to see $10 billion in inflows, at a pace of about $1 billion per month.
Regulatory controversy
Ether’s status as a commodity or security has been hotly debated in regulatory circles. In June, the SEC halted its investigation into the smart contract protocol, presumably to avoid embarrassment, according to Laura Brookover, an attorney at Conensys.
Recently, Rostin Behnam, chairman of the Commodities Futures Trading Commission (CFTC), argued that ETH is a commodity and falls within the purview of his agency.
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