After Bitcoin ETF- Ethereum ETFs Post Bitcoin ETFs’ $14 Billion Surge: What Comes Next?
After Bitcoin ETF– It’s right around the corner.
Market analysts anticipate that the US Securities and Exchange Commission will greenlight spot Ethereum exchange-traded funds shortly after the Independence Day weekend.
The launch of these funds follows the success of spot Bitcoin ETFs, which have attracted $14 billion in investments since their January debut. These ETFs also played a significant role in propelling Bitcoin’s price to record highs back in March.
Could spot Ethereum ETFs have a comparable impact?
Here’s what experts are predicting.
Spot Bitcoin ETFs Expected to Surge to $50 Billion by 2025 as Major Platforms Join In
Spot Bitcoin ETF inflows are projected to increase by 257% to reach $50 billion by the end of 2025, with major platforms like Morgan Stanley and Merrill Lynch set to approve them.
According to Matt Hougan, chief investment officer at crypto ETF provider Bitwise, who outlined this scenario in an investor note this week, Ethereum on-exchange products are also expected to attract $15 billion in net flows within their first 18 months.
Meanwhile, OKX’s chief commercial officer told DL News that he anticipates up to $500 million in investor funds pouring into these ETFs during their first week.
However, others are more cautious in their outlook, suggesting that spot Ethereum ETFs may not replicate the success seen by their Bitcoin counterparts. One concern is that Ethereum lacks a clear narrative comparable to Bitcoin’s status as a safe-haven asset.
Andrew Kang from Mechanism Capital and Duncan Trenholme, co-head of digital assets at TP Icap, have both voiced these reservations.
Unlocking Ethereum’s Potential: Bridging the Gap with Bitcoin
Hougan argues that Ethereum, as the world’s second-largest cryptocurrency, has the potential to surpass expectations by recognizing its distinct role from Bitcoin, much like how gold differs from oil.
While Bitcoin serves as a monetary asset, Ethereum functions more as a technological platform that facilitates the creation of new applications, he explained.
Investors are enthusiastic about technology stocks, Hougan noted. Nearly all investors have exposure to high-growth tech companies like Nvidia and Meta, but comparatively few hold monetary assets like gold.
To exceed expectations, Hougan believes Ethereum must gain recognition as a tech asset, driven by increased adoption of Ethereum-based initiatives such as stablecoins and tokenization products.
Perhaps there’s a need for a new ETF that allocates 10% to ETH and 90% to tech stocks, he suggested. As a starting point for the future of technology, this could be a significant step forward.
Spot Ethereum ETF Launch Expected to Spark New Crypto Rally
The launch of spot Ethereum ETFs is anticipated to ignite a fresh wave of enthusiasm in the crypto market.
Singapore-based QCP has suggested that Ether could soar to $5,430 following the ETFs’ introduction.
Meanwhile, research firm Bernstein and Lekker Capital have more bullish projections, estimating that the ETF launch could propel Ethereum’s price to $6,600 and $7,000 respectively.
Looking at Bitcoin, Bernstein predicts a climb to $200,000 within the next year, driven by increasing crypto adoption, supportive statements from figures like Donald Trump, and strong industry lobbying efforts.
Wintermute shares a similar outlook, forecasting that Bitcoin could reach $100,000 by year-end.
In the short term, however, investors are cautious about Bitcoin’s stability.
Traders are hedging against potential downturns, influenced in part by developments like crypto exchange Mt. Gox’s repayments to creditors and governments selling seized Bitcoin, by increasing their stakes in bullish Ethereum options.
Key Players in the Crypto Market
- Bitcoin is down 4.3% over the past 24 Horus to trade at $60,169.
- Ethereum is down 4.3% to $3,300.
For the latest in crypto updates, keep tabs on Crypto Data Space.
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