ETFs
Bitwise Predicts $15 Billion Rise in Ethereum ETFs: Impact
- Bitwise CIO optimistic that Ethereum ETFs will raise $15 billion within months of launch
- This projection comes ahead of the latest carnage in the crypto ecosystem, triggering a 9% drop in ETH.
Bitwise Chief Investment Officer (CIO) Matt Hougan has predicted a $15 inflow for the Ethereum Exchange Traded Fund (ETF) within 18 months. In a YouTube video with analyst Scott Melker, the executive expressed confidence in the appeal of Ethereum ETFs to institutional investors.
Ethereum ETF Launch Predictions
The cryptocurrency market is in full anticipation of an ETF launch, with many experts predicting possible launch dates. Market experts are confident that ETFs could debut by mid-July, as previously reported by Cryptocurrency News FlashBloomberg reported that recent developments indicate that several candidates will submit their amended S-1 forms by July 8.
Nate Geraci, President of The ETF Store, said Ethereum ETF launch week could begin on July 15. He expects S-1 amendments to begin on July 8, with potential final approvals coming on July 12.
Bitwise’s CIO said a new round of filings could happen next week. However, he noted that the best signal from final S-1 filings would be the inclusion of expense ratios. He said approvals would come a day or two after issuers include the expense ratio in their filings.
Hougan believes that Ethereum ETFs will provide institutions with an attractive diversification opportunity. The CIO’s sentiments are based on Ethereum’s success in regions such as Canada and Europe, where it has consistently attracted notable investments.
Hougan’s optimism is further bolstered by his conversations with an advisory firm with assets in excess of $100 billion. According to Houghan, the firm has shown itself willing to diversify into Ethereum as soon as the spot ETFs officially launch.
Hougan makes another interesting argument that challenges the prevailing narrative that there is a strong correlation between cryptocurrencies and traditional financial markets. He points out that cryptocurrencies operate independently, unlike conventional assets, under normal economic conditions.
This, he says, makes it a valuable tool for investors looking to mitigate risk and achieve better risk-adjusted returns.
Ethereum’s Current Difficulties
While the anticipation for ETFs is high, it remains important to acknowledge Ethereum’s current struggles. The broader market downturn has not spared Ethereumwith the price down more than 9% in the last 24 hours to $2,865. Trading volume increased 57.6% to $29.6 billion, and the market capitalization is set at $344.5 billion.
The cryptocurrency market downturn has led to significant liquidations, with data from CoinGlass revealing over $162 million in Ethereum-related losses over the past 24 hours. Long positions accounted for $138.05 million of these liquidations, while short positions accounted for $24.02 million.
What further complicates the situation is Santiment Report of a decline in Ethereum open interest, indicating a potential decrease in trading activity. Additionally, CryptoQuant Data reveals an increase in Ethereum’s estimated leverage ratio, suggesting an increase in leveraged positions relative to its market capitalization.
However, there are some positive signs emerging for Ethereum. Recent data reveals an increase in decentralized application (dApp) volume, suggesting that some segments of the Ethereum ecosystem continue to see healthy activity.
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