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Bet on BTF for Bitcoin Exposure With Ethereum Kicker

The total market capitalization of the cryptocurrency market recently ascended to $4 trillion. But two assets account for a massive percentage of that figure. As of July 25, bitcoin and ethereum had a combined market value of nearly $2.8 trillion.Ether, the second-largest digital currency, sported a market cap of more $449.1 billion late, as of July 25. That’s more than double the market value of third-place XRP. That’s just one example. But it’s testament to the dominance of bitcoin and ether — more so the former than the latter. But after a long slumber relative to bitcoin, ether has been perking up. And that could highlight advantages offered by ETFs like the CoinShares Valkyrie Bitcoin and Ether Strategy ETF (BTF B+).
The actively managed BTF provides exposure to futures tied to the dominant cryptocurrencies under one umbrella. That means the ETF is an efficient avenue for investors looking for a bit of digital currency diversification. Speaking of BTF benefits, the fund’s ether exposure is likely one reason it surged 27% for the month ending July 25.Ether Resurgence Could Benefit BTFAs noted above, ether spent substantial time dithering while bitcoin was soaring. There’s nothing etched in stone saying that the two can’t move in unison. Yet exclusivity has recently been the name of the game. That’s starting to change. Some experts believe ether could be poised for an extended period of outperformance against its larger rival.
For the six trading days ending last Friday, market participants allocated more cash to spot ether ETFs than to equivalent bitcoin products. That’s a rarity to be sure. And it’s one that could signal optimism that ether’s gains are just getting started. That’d be a good thing for BTF’s ether sleeve.
Ethereum is being supported by some of the same factors that have propelled bitcoin this year. Those includie growing demand as a corporate Treasury asset and a favorable political environment. To the latter point, Eric Trump, one of the president’s sons, is a noted ether bull, and he’s not shy about expressing his feelings on social media.
And like bitcoin, there are certain price points that could be hurdles or tailwinds to ethereum. In this case, it’s $4,000. Galaxy Digital CEO Michael Novogratz said last week that if the digital currency moves beyond $4,000, it becomes a price discovery story. And while ether supply isn’t capped, as is the case with bitcoin, there may not be enough supply of the former on the market today to meet demand if new all-time highs are notched.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
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