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The potential of a spot Bitcoin (BTC<\/a>) exchange-traded fund (ETF) approval to drive prices up is dramatically underestimated by the crypto market, claim analysts from crypto research firm K33 \u2014 formerly Arcane Research.\u00a0<\/p>\n In a Sept. 5 market report<\/a>, K33 senior analyst Vetle Lunde and vice president Anders Helseth said the last three months had greatly improved the chances of a spot Bitcoin ETF approval despite the sentiment not being reflected in the price of Bitcoin or other mainstay crypto assets. <\/p>\n The analysts explained while Bitcoin had all but given up its gains<\/a> in the wake of Grayscale\u2019s legal victory over <\/a>the Securities and Exchange Commission \u2014 an approval would \u201cattract enormous inflows\u201d and significantly increase buying pressure for Bitcoin.<\/p>\n However, the downside of a potential spot ETF rejection would be \u201cnegligible\u201d and Bitcoin prices would simply maintain business as usual, they wrote.<\/p>\n Lunde and Helseth added that given the increased likelihood of spot ETF approvals \u2014 with several Bloomberg analysts now predicting a 75% chance of approval<\/a> within the year \u2014 the market’s outlook on ETFs is fundamentally incorrect. <\/p>\n \u201cI firmly believe the market is wrong. This is, by all accounts, a buyer\u2019s market, and it\u2019s reckless not to aggressively accumulate BTC at current levels.\u201d<\/p><\/blockquote>\n Bolstering their bullish prediction, the analysts looked to the recent 2% gain in the tech-heavy Nasdaq-100 index, often viewed as an indicator of the broader market’s risk appetite.<\/p>\n Additionally, Lunde and Helserth shared their optimism for the price of Ether (ETH<\/a>), explaining that ETH appears likely to outperform Bitcoin over the next two months as it will benefit from strong momentum ahead of a futures-based ETF listing<\/a>.<\/p>\n Related: <\/em><\/strong>BTC bull market began in March, more will realize in a year \u2014 Arthur Hayes<\/em><\/strong><\/a><\/p>\n They explained Ether may track a similar path to Bitcoin which gained roughly 60% in the weeks leading up to the launch of the first Bitcoin futures-based ETF on Oct. 19, 2021.<\/p>\n The verdict on a futures-based Ether ETF<\/a> is slated to be handed down in mid-October which is reportedly set to get the green light<\/a> from the SEC. <\/p>\nETH set to outperform BTC<\/h3>\n