The below-expected performance of nine new Ethereum (ETH) futures exchange-traded funds (ETFs), which opened for transactions in the USA for the first time, led analysts at Norway-based digital asset research and investment company K33 Research to call for a return to Bitcoin (BTC).

It's Time to "Put on the Brake" on Altcoin King Ethereum

In the market report dated October 3 published by K33 Research analysts Anders Helseth and Vetle Lunde, the initial trading volume of #Ethereum futures ETFs exceeded that of the ProShares Bitcoin Strategy ETF (BITO) on its first trading day in October 2021. They stated that it was time to put the brakes on ETH and go back to BTC, as it could only reach 0.2 percent.

While analysts stated that no one expected the initial trading volume in Ethereum futures ETFs to approach the performance of Bitcoin futures ETFs, which were launched in the middle of the strong bull market, they noted that the first day's numbers were well below expectations. The first day trading volume of Ethereum futures ETFs was only 0.2 percent of the trading volume reached by Bitcoin futures ETFs in 2021.

The lack of institutional appetite for Ethereum futures ETFs has led Lunde to backtrack on his previous recommendation to increase ETH allocation to make the most of ETF hype. “The Ethereum futures ETF launch provides an important lesson for traditional investors to consider the impact of easier access to cryptocurrency investments; increased institutional access will only create buying pressure if there is significant unsaturated demand,” Lunde wrote in his analysis. "It's not like this," he wrote.

In the report's section titled "More chop ahead," Lunde noted that the vast majority of the cryptocurrency market lacks meaningful short-term price catalysts and will likely remain sideways for the foreseeable future. According to Lunde, the current outlook could only change with the approval of a spot Bitcoin ETF early next year and Bitcoin's block reward halving, which is expected to occur in April 2024. Lunde said, "For now, the traction in the cryptocurrency market is concentrated on BTC, and promising future developments support aggressive accumulation." said.

Ben Laidler, global markets strategist at trading platform eToro, charts a path similar to Lunde's for the cryptocurrency market, albeit in a slightly more downtrend. Laidler stated that the possible downward trigger for the prices of basic cryptocurrencies such as BTC could be current macro trends and said:

The Fed and oil prices have been consistently strong macro influencers on the cryptocurrency market over the past few years. In the final phase of the current rate hike cycle, the market is looking for more good news to continue, but with oil prices rising again this could have a cooling effect on sentiment.