Ethereum ETF Revenues Could Hit $10B, Sending ETH To New High – Analyst
Ethereum exchange-traded funds (ETFs) have attracted up to $10 billion in new inflows in the months since their launch, sending the price of Ether (ETH) to record highs by the end of the year, Tom Dunleavy, managing partner on crypto at investment firm MV Global, told Cointelegraph.
“We've seen $15 billion inflows for Bitcoin. I think we'll see $5 to 10 billion for Ethereum,” Dunlevy said. “I expect a very positive price impact that will send us to new all-time highs in early Q4.”
The eight spot ETH ETFs are awaiting final approval from US regulators and are widely expected to start trading as soon as this month. The funds join a list of nearly a dozen Bitcoin (BTC) ETFs that began trading in January. In total, BTC ETFs currently manage around $15.9 billion.
Related: Ethereum ETFs ‘closer to finish line' – Bitwise exec
Dunlevy said he expects ETH ETFs to attract $1 billion per month as a “fundamental issue” over the next few months. He added that compared to BTC, ETH is “less available on exchanges[ing] Thinner order books and less to buy” and thus the ETH spot price is more responsive to buying demand from ETFs than BTC.
“The BTC ETF has seen a 36% price appreciation since January 10th, and >50% since initial speculation and rumors,” Dunleavy wrote in a Q2 investor note shared with Cointelegraph.
“We believe there will be strong buying pressure with a clearer narrative that traditional investors can understand. ETH has cash flow. It can be described as a technology stock, a crypto app store, or an Internet bond.” […]”This is a much easier sell to financial advisors than ‘digital gold,'” the memo said.
ETH's performance so far this year has lagged that of BTC, with relatively deeper drops during the decline, according to data from Cointelegraph Markets Pro and TradingView. Dunleavy cautioned that a rebound in ETH's performance may not filter down to altcoins.
Ethereum ETF investors “won't be users who were on the onchain. They'll be users who own stuff in their 401k,” Dunleavy said.
Magazine: Bitcoin's $500K Prediction, Spot Ether ETF ‘A Worrying Case' — Thomas Fahrer, X Flame Hall
