Ethereum ETFs Witness Stellar Start As Trading Soars; Analyst Sees ETHs Price Reaching $8,000 In Q4

Ethereum ETFs (exchange-traded funds) began trading on Tuesday, generating significant volume within the first 2 hours of trading. Interestingly, the Ethereum ETFs ranked among the top 1% regarding ETF volume.  Related Reading: Analyst Says Solana Price Will Surge 1,000% To $1,800, Heres When Ethereum ETFs Surpass Traditional Launch Volumes According to Bloomberg ETF expert Eric Balchunas, the ETH ETFs traded $361 million in the first 90 minutes on launch day, surpassing the typical volume seen at the launch of traditional ETFs. Blachunas said: Here’s where we at after 90 minutes. $361m total. As a group that number would rank them about 15th overall in ETF volume (about what $TLT and $EEM trade), which is Top 1%. But again compared to a normal ETF launch, which rarely see more than $1m on Day One, all of them have cleared that number and then some. Matthew Sigel, head of digital asset research at asset manager VanEck, highlighted the significance of these figures in the first hours of trading, noting that Ethereum ETFs saw more than 50% of trading volume compared to Bitcoin’s $610 million on day one, indicating strong investor interest in Ethereum. However, how these numbers will fare at the close remains to be seen. Bitcoin ETFs saw $4.6 billion in volume on their first day of trading in January, which may indicate the future performance of these newly approved index funds for the second-largest cryptocurrency on the market. ETHs Price Targets Soar Crypto analyst Doctor Profit shared a report highlighting a potentially massive parabolic move for Ethereum’s price this year in the wake of the expected inflows in the new Ethereum ETF market.  While some anticipate a correction due to the “sell the news” phenomenon, Doctor Profit argues that the market has already factored in the ETF launch but has yet to consider the significant inflows of USD that will flood into the Ethereum ETFs.  With Ethereum’s market cap being three times smaller than Bitcoin’s, Doctor Profit believes that every dollar invested in ETH is expected to have three times the price impact compared to Bitcoin, positioning Ethereum favorably for substantial price gains. Furthermore, the analyst contends that while Ethereum’s Grayscale ETH Fund sell pressure is comparable to the Bitcoin ETF launch, the impact is expected to be less severe.  Related Reading: Helium (HNT) Rockets In Value With 41% Rally Heres Why Looking ahead, Doctor Profit has set expected price targets for Ethereum in the coming months, including a potential target between $4,500 and $5,500 by Q3 2024, indicating steady but modest growth.  Moving into Q4 2024 and Q1 2025, the price range is expected to expand from $5,500 to $8,000. However, it is in Q2 2025 that Ethereum is expected to significantly jump, with price targets ranging from $8,000 to $14,000.  At the time of writing, ETH is trading at $3,444, showing sideways movement with no significant change from yesterday’s price, despite the hype surrounding the launch of the ETF market.  Featured image from DALL-E, chart from TradingView.com

View Details

Bitwise CIO Bullish On Ethereum ETFs Fueling Surge To Record Highs Above $5,000

As the highly anticipated launch date of spot Ethereum ETFs approaches, Matt Hougan, Chief Investment Officer of crypto asset manager Bitwise, has stressed the potential for these ETF inflows to drive the Ethereum price to record highs.  In a recent client note, Hougan highlighted the significant impact that ETF flows could have on the Ethereum [...]

The post Bitwise CIO Bullish On Ethereum ETFs Fueling Surge To Record Highs Above $5,000 appeared first on Crypto Breaking News.

View Details

Experts Bullish On Ethereum ETFs Launching July 4, Predicting Potential Surge Beyond $7,000

As the highly anticipated launch of the first spot Ethereum ETFs in the United States nears, experts are predicting a significant price appreciation for the second-largest cryptocurrency in the market. Ethereum ETFs On The Horizon According to a recent Reuters report, the US Securities and Exchange Commission (SEC) could approve Ethereum ETFs as soon as [...]

The post Experts Bullish On Ethereum ETFs Launching July 4, Predicting Potential Surge Beyond $7,000 appeared first on Crypto Breaking News.

View Details

Bitwise CIO Bullish On Spot Ethereum ETFs: Envisions $15 Billion Inflows

In a significant development for the cryptocurrency market, asset managers are eagerly preparing for the launch of new spot Ethereum ETFs, pending approval from the US Securities and Exchange Commission (SEC).  Bitwise Chief Investment Officer (CIO) Matt Hougan has weighed in on the potential of these ETFs, predicting substantial inflows into the regulated market within the first months of trading. Market Data Suggests $15B Demand For Spot Ethereum ETFs Hougan’s projections are based on a thorough analysis of available data. He emphasizes that there is no need for speculation when estimating the demand for spot Ethereum ETFs. Instead, Hougan points to the existing market data to support his forecast of $15 billion in net inflows during the initial 18-month period. To arrive at this estimate, Hougan compares the relative market capitalizations of Bitcoin (BTC) and Ethereum (ETH). As a starting point, he expects investors to allocate to Bitcoin and Ethereum exchange-traded products (ETPs) roughly in proportion to their market capitalizations.  Related Reading: 10x Your Crypto Portfolio: Top Analyst Highlights 4 Altcoins To Buy Bitcoin’s market cap currently stands at $1,266 billion, representing 74% of the combined market, while Ethereum’s market cap is $432 billion, accounting for 26% of the combined market. Considering US investors already have around $56 billion invested in spot Bitcoin ETPs, Hougan anticipates reaching $100 billion or more by the end of 2025 as these ETFs mature and gain approval on prominent platforms such as Morgan Stanley and Merrill Lynch.  Using this $100 billion benchmark, he suggests that spot Ethereum ETFs would need to attract $35 billion in assets to achieve parity, which he estimates will take approximately 18 months. However, Hougan acknowledges that the actual inflows may differ due to various factors. For instance, the Grayscale Ethereum Trust (ETHE) is expected to convert to an ETP on the launch day, bringing along $10 billion in assets. Factoring this in, the estimated net inflows to reach parity would be around $25 billion. Analysis Of International ETF Markets  To validate his estimates, Hougan looks at international ETF markets, particularly Europe and Canada, which already offer Bitcoin and Ethereum ETFs.  The asset split between the two cryptocurrencies in these markets is similar, according to Hougan, with Bitcoin ETPs accounting for approximately 78% and Ethereum ETPs representing around 22% of the total Assets Under Management (AUM). This alignment with market cap breakdowns strengthens Hougan’s earlier estimate. Hougan also considers the potential impact of the “carry trade” on Bitcoin and Ethereum ETP markets. While a significant fraction of US Bitcoin ETP flows are linked to the carry trade strategy, he highlights that the Ethereum ETP carry trade is not profitable for institutions.  To maintain a conservative estimate, Hougan removes the $10 billion carry-trade-related AUM when sizing the Bitcoin market, leading to a revised estimate of $15 billion in net inflows for Ethereum ETPs. Related Reading: Analysts Battle Over Cardanos Next Move: 12,000% Rally Or 50% Crash? In sum, Hougan believes that while there are several factors to consider and potential adjustments to the model, a starting point of $15 billion in net new demand for spot Ethereum ETFs within the next 18 months is a reasonable projection.  At the time of writing, ETH was trading at $3,405, up nearly 3% in the past 24 hours, after hitting a low of $3,230 on Monday.  Featured image from DALL-E, chart from TradingView.com

View Details

Ethereum Inflows Soar: Record Week With $69M As ETFs Near Trading Launch, Whats Next?

Following the recent price spike that brought Ethereum (ETH) close to the $4,000 mark, the second-largest cryptocurrency has experienced inflows and renewed market enthusiasm. This comes in response to the US Securities and Exchange Commissions (SEC) approval of Ethereum ETF applications by major asset managers. Best Week For Ethereum Since March  According to a report [...]

The post Ethereum Inflows Soar: Record Week With $69M As ETFs Near Trading Launch, Whats Next? appeared first on Crypto Breaking News.

View Details

Research Firm Projects Ethereum Explosion To $15,000 With ETF Inflows

Michael Nadeau, founder of The DeFi Report, has published a deep dive into the implications of the approval of spot Ethereum (ETH) Exchange-Traded Funds (ETFs) on the cryptocurrency’s price trajectory. This analysis follows on the heels of a significant regulatory nod from the US Securities and Exchange Commission (SEC), which approved the 19b-4 applications for eight leading financial entities Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin. These approvals, granted under a collective omnibus order on May 23, set the stage for the final steps, which involve awaiting S-1 registrations’ sign-offs before these spot ETFs can start trading. Why Ethereum Could Skyrocket To $15,000 The report draws upon projections by ETF experts at Bloomberg, such as James Seyffart and Eric Balchunas, suggesting that the inflows into Ethereum ETFs could range between 10-20% of those experienced by Bitcoin ETFs. “The logic behind these projections rests on a few key observationscurrently, there is less institutional interest in ETH, and it is inherently more complex than BTC. Also, the ETH futures ETF volume is considerably less than BTC’s, ranging from 10-20%, and ETH spot trading volumes are roughly half of BTC’s,” Nadeau explains. He added that “ETH is more difficult to understand than BTC. ETH futures ETF volume is less than BTC (10-20%). ETH spot trading volumes are less than BTC (about 50%). ETH is about 1/3 of BTCs market cap.” Related Reading: Ethereum Spot ETFs: Report Shows Grayscale Could Keep ETH Price Down With $110M Daily Outflows However, according to the researcher, the dynamics of Ethereum offer a unique perspective when compared to Bitcoin. “Ethereum validators do not incur the substantial operating expenses that Bitcoin miners do, which mitigates the structural sell pressure on the asset,” Nadeau states. This difference is critical in understanding the supply-side dynamics of Ethereum compared to Bitcoin. Nadeau also delves into the current status of Ethereum on-chain activities. A substantial portion of Ethereum, approximately 38%, is effectively ‘soft locked’ across various mechanisms like staking contracts and DeFi applications. This scenario, as Nadeau points out, “helps reduce the available circulating supply, contributing to a decrease in ETH balances on exchanges to levels not seen since 2016currently, this stands at less than 11% of the circulating supply.” The concept of reflexivity in Ethereum’s market behavior also receives significant attention in Nadeau’s report. “ETH is more reflexive than BTC. This reflexivity could be expressed with price action leading onchain activity, which leads to more ETH burned, which can further drive narratives, more price action, more onchain activity, and more ETH burned,” Nadeau elaborates, suggesting a cyclic effect that could significantly amplify Ethereum’s market presence and valuation. Related Reading: Ethereum Deposits At 4-Month High: Whales Preparing For Selloff? Exploring potential market scenarios, Nadeau questions the extent of rebalancing that might occur from spot Bitcoin ETF holders towards Ethereum, the attractiveness of a 50/50 BTC and ETH allocation, and the potential shift of institutional focus towards Ethereum. He hypothesizes, “If momentum hits ETH, will we see the ‘reflexivity flywheel’ kick into gear? How many institutions are on the sideline right now, having missed BTC? Will they go all in on ETH?” In concluding his analysis, Nadeau presents a valuation framework that anticipates the cryptocurrency market reaching a $10 trillion market cap. He states, Given our fundamental views on ETH, we think its more likely that ETH will outperform Bloombergs projections of 10-20% of BTCs net inflows. Under this scenario and projects that “ETH could command a market cap at cycle peak of $1.8 trillion, which would price ETH at approximately $14,984 (3.9x), assuming no change in supply.” He continues, “For reference, if Bitcoin reaches a $4 trillion market cap, that would price BTC at $202,000 (2.8x) at cycle peak. At press time, ETH was trading at $3,823, still around 29 % away from its 2021 all-time high. Featured image created with DALL·E, chart from TradingView.com

View Details

DeFiance Capital Foresees ETH Soaring To $4,500 Pre-Ethereum ETF Trading

As the US Securities and Exchange Commission (SEC) approved all the spot Ethereum ETF applications, despite increased regulatory uncertainty surrounding the cryptocurrency, investors are becoming more optimistic about the potential for ETH’s price to reach new heights.  Bullish Sentiment Surrounds Ethereum ETF Approval  DeFiance Capital Founder and CIO Arthur Cheong predicts that ETH could reach an annual high of $4,500 before the newly approved index funds begin trading, surpassing its mid-March high of $4,096. This projection falls just short of ETH’s all-time high of $4,878 during the 2021 bull run. In addition, a survey conducted by WuBlockchain in the Chinese community revealed that 58% of respondents believe that ETH has the potential to rise to $10,000 or even higher in this market cycle.  Related Reading: Kickstarting The Bitcoin Bull Run: Expert Says $70,000 Is The Level To Beat The recent regulatory pivot by the SEC towards approving Ether ETFs has intensified bets on further price gains. In the seven days following the announcement, ETH experienced a 26% surge, marking the largest weekly advance since the 2021 crypto bull market.  This development brings hope to speculators, considering the success of US spot Bitcoin ETFs, which have amassed $59 billion in assets since their record-breaking debut in January.  However, spot Ethereum ETFs will not participate in staking, earning rewards by pledging tokens to maintain the Ethereum blockchain. This omission could potentially dampen interest in these funds in comparison to holding the tokens directly. Although additional SEC approvals are required before issuers such as BlackRock and Fidelity Investments can launch their products, the timeline for these releases remains uncertain. As of now, ETH is trading around $3,900, with expectations of further upside potential. Options Bets Signal Potential Climb To $5,000 According to a Bloomberg report, analysts such as Pepperstone Group Head of Research Chris Weston believe that pullbacks in ETH are buying opportunities as the risk remains skewed to the upside.  Interestingly, as seen in the chart below, some traders are placing bullish options bets, with concentrations signaling a potential climb to $5,000 or more. Furthermore, ETHs volatility, as indicated by the T3 Ether Volatility Index, is expected to be greater than that of Bitcoin, highlighting the potential for larger price swings in the second-largest digital asset. Related Reading: Ripple CTO Addresses Curious Price Link Between XRP And XLM Insights from the futures market, particularly the level of open interest in Chicago Mercantile Exchange (CME) Ethereum futures, provide evidence of institutional demand for regulated exposure to cryptocurrencies.  While open interest in CME Ether futures is growing, it remains significantly lower than that of CME Bitcoin futures. This suggests relatively less institutional exposure to Ether and could potentially impact initial inflows into Ether ETFs. Nevertheless, as the approval of Ethereum ETFs opens up new avenues for investment and speculation, the market is closely watching ETH’s price performance, with bullish sentiment and optimistic predictions prevailing among investors. Featured image from Shutterstock, chart from TradingView.com

View Details

When Spot Ethereum ETFs Go Live Expect A Bloodbath, Says Expert

Thomas Fahrer, co-founder of Apollo, a firm focused on Bitcoin adoption, has issued a stark warning regarding the potential market dynamics following the approval of spot Ethereum ETFs. As the market anticipates this new development, Fahrer suggests that the transition might not be smooth for Ethereum. The Grayscale Ethereum Trust launched in 2017 and accumulated [...]

The post When Spot Ethereum ETFs Go Live Expect A Bloodbath, Says Expert appeared first on Crypto Breaking News.

View Details

Post-Ethereum ETF Analysis: ETH Price Seeks Bottom As Bulls Eye $5,000 Target

The recent approval of the Ethereum ETF applications by the US Securities and Exchange Commission (SEC) on Thursday has sparked speculation on the next price movements for the markets second-largest cryptocurrency as the trading launch date approaches.  However, significant transfers of Ethereum (ETH) to cryptocurrency exchanges have raised concerns about profit-taking, portfolio rebalancing, and potential [...]

The post Post-Ethereum ETF Analysis: ETH Price Seeks Bottom As Bulls Eye $5,000 Target appeared first on Crypto Breaking News.

View Details