ETFs
What to Expect From Ethereum ETFs After Record $14 Billion Bitcoin ETF Frenzy – DL News
- Ethereum ETFs are expected to launch any day now.
- Experts expect explosive growth if Bitcoin ETF success is repeated.
- Bitcoin ETFs could see $50 billion in inflows over the next year.
It’s almost there.
Market Observers to wait for The U.S. Securities and Exchange Commission will approve Ethereum spot exchange-traded funds after the Independence Day weekend.
The fund launch comes after spot Bitcoin ETFs saw $14 billion in inflows since their launch in January.
These funds also propelled the price of Bitcoin to record highs in March.
Will Ethereum Spot ETFs Have a Similar Effect?
Here’s what the experts are expecting.
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Bitcoin spot ETF inflows will increase 257% to $50 billion by the end of 2025 as major platforms like Morgan Stanley and Merrill Lynch begin approving them.
That’s according to Matt Hougan, chief investment officer at crypto ETF provider Bitwise, who made the argument in a Note to investors this week.
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Ethereum exchange products will attract $15 billion in net flows in their first 18 months, he said. a separate note.
And the chief commercial officer of crypto exchange OKX said DL News He expects investors to pour as much as $500 million into the ETFs in their first week.
Others offer a more bearish outlook, arguing that spot Ethereum ETFs will not be able to replicate the success of their Bitcoin counterparts.
On the one hand, Ethereum lacks a clear narrative comparable to Bitcoin’s status as a safe haven asset.
Managing Partner of Mechanism Capital Andre Kang and co-head of digital assets at TP Icap Duncan Trenholme both expressed these concerns.
Defying the odds
Hougan argued that there is a way for the world’s second-largest cryptocurrency to defy the odds – acknowledging that Bitcoin and Ethereum “are as different as gold and oil.”
While Bitcoin is structured as a monetary asset, Ethereum is more like a technology platform that allows others to build new applications on top of it, he said.
“Investors love tech stocks,” Hougan said. “Almost all investors have exposure to high-growth tech stocks like Nvidia and Meta, and relatively few have exposure to monetary assets like gold.”
But for Ethereum to exceed expectations, the idea that it is a technology asset needs to gain traction, he said.
This requires increased adoption of Ethereum-based initiatives, such as stablecoin or tokenization some products.
“Maybe someone should launch a new ETF that’s 10% ETH and 90% tech stocks,” he said. “As a starting point for the future of tech, you could do a lot worse.”
And the price ?
The launch of Ethereum Spot ETFs is expected to spark a new crypto rally.
Singapore-based QCP suggested Ether would surge to $5,430 on the back of ETFs.
Others — such as a research firm Bernstein And Lekker Capital — suggest the launch will push the price to $6,600 and $7,000 respectively.
For Bitcoin, Bernstein predicted that Bitcoin will reach $200,000 over the next year, aided by growing crypto adoption, Donald Trump pro-crypto stance and the powerful industry lobby.
Wintermute, similarly, projected that Bitcoin could reach $100,000 before the end of the year.
In the short term, however, investors are betting that Bitcoin will continue to falter.
Traders hedge against economic downturn, thanks in part to cryptocurrency exchange Mt. Gox refunds to creditors and governments Bitcoin sale seized on the open market — by engaging in bullish options trading on Ether.
Cryptocurrency Market Players
- Bitcoin is down 4.3% over the past 24 hours to trade at $60,169.
- Ethereum is down 4.3% to $3,300.
What we read
Eric Johansson is the editor-in-chief of DL News. Do you have any information for us? Send him an email at eric@dlnews.com.