A research conducted by K33 shows that Bitcoin continues to dominate the cryptocurrency market as the most appealing digital asset. This is mainly attributed to its higher premiums in futures trading. On the other hand, Ethereum, the second most valuable crypto asset by market capitalization, is expected to play a secondary role due to the lower yields it would post in the derivatives market.
The researchers believe that Bitcoin’s potential as a digital gold and the upcoming launch of a spot Bitcoin exchange-traded fund (ETF) could contribute to Ethereum’s underperformance. They suggest that sticking with Bitcoin is the safest option until a strong positive fundamental emerges from the Ethereum ecosystem.
Despite the broader market downtrend, Bitcoin has solidified its hold on the crypto marketplace. BTC’s dominance has grown to almost half of the crypto market, and it has an open interest volume of 411,000 BTC, equivalent to approximately $11.6 billion in value. While its spot volume has decreased by 15% in the past seven days, the open interest volume has witnessed a 1.8% spike.
The spotlight on Bitcoin has intensified following Grayscale’s announcement of their intention to convert their Bitcoin Trust Fund into a spot Bitcoin ETF. The decision is pending court ruling on October 13. K33 researchers argue that the courts are likely to instruct US regulators to re-evaluate Grayscale’s application. The approval of a Bitcoin ETF could potentially attract over $150 billion worth of capital into the crypto market over several years.
