Ether is expected to gain value relative to bitcoin in the near term as anticipation of spot exchange-traded fund (ETF) trading attracts investor interest to the second-largest digital asset by market cap, according to an investment manager.

"ETH/BTC ratio probably keeps marching up to 0.06," said Arbelos Markets co-founder Joshua Lim to The Block.

Currently, the ratio is 0.056, having risen from a multi-month low of 0.045 in mid-May before the surprise approval of eight spot ether ETFs by the U.S. Securities and Exchange Commission (SEC) last week. The SEC approved the ether spot ETFs on Thursday, but unlike bitcoin ETFs, which started trading the day after approval, the ether ETFs might not launch for several weeks or months.

K33 Research supports Lim’s view, suggesting that ether is well-positioned for relative strength against bitcoin until the spot ether ETFs are launched. Their market report on Tuesday recommends increased ether exposure for now.

"Conditions currently favor overweight ether exposure, and its strength mirrors bitcoin’s price action before BTC’s ETF approval. In the coming weeks, filers will attract investors to secure a solid foundation for the ETF launch, while ether is only indirectly affected by the large creditor repayments from the Mt. Gox estate. This supports continued relative strength in ether until the ETF launch," K33 Research analysts stated.

Lim also mentioned that the ether market is undergoing a longer re-evaluation and price adjustment period. "I think ether has been under-owned for so long that we are seeing a longer re-rating rotation," he added.

Other high market-cap assets are also gaining attention following the ether ETF approval. "Notably, there was an uptick across legacy proof-of-work coins as the market started pricing in an increased probability of ETFs for a broader range of crypto assets," Lim said.

Ether's price dropped by over 2.7% in the past 24 hours, trading at $3,839 at 12:28 p.m. ET, according to The Block’s Price Page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, decreased by 2.67% to 145.40 in the same period.