Ethereum ETF Revenues Could Hit $10B, Sending ETH To New High – Analyst
Ether exchange-traded funds (ETFs) will attract up to $10 billion in new revenue in the months following their launch and send ether prices to record highs by the end of the year, Tom Dunleavy Global, managing partner of crypto investment firm MV, told Cointelegraph.
“We've seen $15 billion inflows for Bitcoin. I think we'll see $5 billion 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.”
Eight Spot Ether (ETH) ETFs are awaiting final approval from US regulators and are widely expected to begin 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'.” According to the memo.
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.
Ether ETF investors will not be “onchain users. In the 401k, they will be the beneficiaries who own the goods,” Dunleavy said.
Magazine: Bitcoin's $500K Prediction, Spot Ether ETF ‘A Worrying Case' — Thomas Fahrer, X Flame Hall
