Published on juni 27, 2024, 12:29 am
Image source: Fox News
```json [ "TLDR: Introduction of spot Ethereum ETFs expected to attract significant capital inflows, with projections estimating around $15 billion in net flows within the first 18 months. Bitwise's CIO, Matt Hougan, considers various factors like market cap, global crypto ETP market, and Bitcoin ETF dynamics in his analysis. Anticipation for SEC approval has firms preparing for trading activities by July, while recent data shows ETH finding support at $3,300 demand zone. Investors are urged to research thoroughly before making financial decisions in cryptocurrency markets." ] ```
The introduction of spot Ethereum ETFs is expected to have a significant impact on the market, potentially leading to substantial capital inflows. Bitwise’s Chief Investment Officer, Matt Hougan, believes that these investment products could attract massive amounts of capital within their initial months of trading.
Hougan predicts that Ethereum ETPs could draw in around $15 billion in net flows during the first 18 months on the market. This projection is based on a comprehensive analysis considering various factors such as Ether’s market cap compared to Bitcoin’s, the global crypto ETP market, the conversion of Grayscale’s Ethereum Trust to an ETF, and the dynamics of spot Bitcoin ETFs’ “carry trade.”
According to Hougan, U.S. investors currently have approximately $56 billion invested in spot Bitcoin ETPs, with expectations for this figure to reach $100 billion by 2025 as these ETFs gain traction on platforms like Morgan Stanley. Adjusting for these numbers and other considerations, it is estimated that spot Ethereum ETFs could see a net flow of around $25 billion.
Analyzing international markets revealed a similar split in investments between Bitcoin and Ethereum ETPs. Given this data, Hougan revises the estimate to approximately $18 billion by considering the proportionate share Ethereum holds globally compared to Bitcoin.
While discussing potential scenarios like the “carry trade,” where institutions may not engage in an Ethereum carry trade due to staking limitations in U.S. spot Ethereum ETFs, Hougan adjusts his projection down to $15 billion by 2025.
Amidst this anticipation for spot Ethereum ETFs’ launch following SEC approval, firms are finalizing registrations with trading activities expected as early as July. Recent data shows ETH finding support at the demand zone near $3,300 while technical indicators suggest positive market conditions favoring further upside movements with traders setting price targets between $3,500 and $3,973.
It’s important to note that this article aims to provide insights into cryptocurrency trends and developments without offering investment advice. Investors are advised to conduct thorough research before making any financial decisions in volatile markets like cryptocurrencies.
Original article posted by Fox News
