Ether (ETH) is poised to continue gaining value relative to bitcoin (BTC) in the near term, driven by growing investor interest ahead of the anticipated trading of spot exchange-traded funds (ETFs) for the second-largest digital asset by market capitalization, according to a leading investment manager.

Joshua Lim, co-founder of Arbelos Markets, shared with The Block that the ETH/BTC ratio, currently at 0.056, is expected to climb to 0.06. This steady increase comes after hitting a multi-month low of 0.045 in mid-May, before the U.S. Securities and Exchange Commission (SEC) approved eight spot ether ETFs last week.

Unlike bitcoin ETFs, which began trading immediately after approval, the newly approved ether ETFs may take a few weeks or even months to go live. Despite this, the SEC’s decision has already begun to drive up ether’s value relative to bitcoin.

Lim's perspective is supported by analysts at K33 Research, who also predict that ether will demonstrate relative strength compared to bitcoin until the spot ether ETFs are officially launched. In their latest market report, K33 Research highlighted the favorable conditions for increased ether exposure.

"Conditions are currently favoring overweight ether exposure, and the asset's current strength resembles bitcoin’s price action in the months leading to BTC’s ETF approval," noted K33 Research analysts. They added that the upcoming weeks will see ETF filers actively seeking investors to ensure solid seed funding and traction for the eventual launch of ether ETFs.

Furthermore, K33 Research pointed out that ether is only indirectly affected by the massive creditor repayments from the Mt. Gox estate, which impacts bitcoin more directly. This dynamic further supports the continued relative strength of ether until the ETFs are live.

As the market awaits the launch of these ether ETFs, investor sentiment remains bullish on ether, with many seeing it as well-positioned to outperform bitcoin in the immediate future.