One analyst predicts that Ethereum will continue to gain value compared to Bitcoin in the near term.
This prediction comes from Arbelos Markets co-founder Joshua Lim, who attributes this trend to the prospect of spot ETF trading attracting increased investor interest.
According to Lim, the ETH/BTC rate, currently at 0.056, is likely to continue its upward trend and reach 0.06. This forecast follows a steady climb from a multi-month low of 0.045 in mid-May.
This increase in ETH’s value coincides with the surprise approval of eight spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) last week. Unlike Bitcoin ETFs, which begin trading the day after approval, ETH ETFs may not go live for several weeks or even months.
Lim suggests that the ETH market is going through a longer period of re-evaluation and price adjustment. “I think ETH has been an underowned asset for so long that we are seeing a longer revaluation rotation,” he added.
The approval of ETH ETFs appears to have a ripple effect on other high market cap assets. Lim noted a rise in older proof-of-work coins that indicates the market is starting to price in the increasing possibility of ETFs across a broader range of crypto assets.
*This is not investment advice.
