It looks like Ethereum is gearing up for a heavyweight title fight against Bitcoin, and its secret weapon? The SEC... The same SEC that almost went to court against Ethereum—before changing their mind last minute (we're still wondering what Vitalik whispered in Gensler’s ears).

Related: Buterin Wants Everyday People to Become Validators. Yay or Nay?

According to K33 Research, Ethereum is about to kick Bitcoin where it hurts and take up the top spot. Why? 

Because Uncle Sam's financial watchdog is expected to approve Ethereum ETFs as soon as July 4th. Nothing says "financial independence" quite like approving a new investment vehicle on Independence Day, right?

Here's the scoop:

  • Ethereum ETFs could get the green light as early as July 4th (fireworks, anyone?)
  • K33 Research predicts Ethereum will outperform Bitcoin in July
  • Between 0.75% and 1% of all ETH in circulation could be gobbled up by ETFs in just five months
  • The ETH/BTC ratio has been on a rollercoaster ride, currently sitting pretty at 0.055

Now, you might be thinking, how the hell will Ethereum pull this off. Some dudes on Crypto Twitter (CT) feel the ETH ETF launch will just be another Bitcoin ETF case.

But here’s why Ethereum might do better.

For starters, Ethereum doesn't have a Mt. Gox-shaped cloud hanging over its head. While Bitcoin hodlers are sweating over a potential 141,686 BTC distribution from the defunct exchange (that's a cool $8.8 billion, in case you were wondering), Ethereum's sitting pretty with what K33 calls "positive supply dynamics."

K33's senior analyst, Vetle Lunde, is practically giddy about Ethereum's prospects, calling current ETH/BTC prices "a bargain for the patient trader."

But wait, there's more! 

The futures market is hot right now—Bitcoin futures premiums on the CME are back in double digits at 10.9%. Not to be outdone, Ethereum's got its own party going with the VolatilityShares 2x leveraged ETH ETF holding 33,700 ETH ($114 million) after just 15 trading days. It's like the crypto equivalent of a popular new nightclub – everyone wants in.

Now, let’s come back to earth for a sec. 

There’s still the possibility of a "sell the news" event when the ETFs actually launch. 

But K33 remains optimistic, predicting that Ethereum will show "relative strength" over the next few months.

Ethereum's price is also sitting pretty, hovering around $3,340, while Bitcoin's sitting at about $60,761. But according to K33, this gap might start closing faster than a New York minute once those ETFs hit the market.

CME ETH open interest is also flexing, sitting pretty close to all-time highs at 372,000 ETH ($1.26 billion). 

But before you start popping the champagne, K33 Research warns that the soft funding rates suggest a balanced market. In other words, nobody's sure if this rocket's going to the moon or if it's going to pull a Challenger.

More Infо: ETH Users Now 9x More Than 2020 As Van Van Eck Tips $22k Valuation By 2030

So, what does all this mean for the average Joe (or Jane) investor? Well, if K33's crystal ball is working correctly, it might be time to pay a bit more attention to Ethereum. 

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