Ethereum (ETH) tops $10k this cycle and Bitcoin: ETFs will be the view.
TLDR
Ethereum (ETH) spot ETF is expected to attract huge revenues, which could reach 4 billion dollars in the first five months of trading. Analysts predict that ETH will outperform Bitcoin (BTC) in the second half of this market cycle for several reasons, including lower operating costs, token incentives, and a token burning mechanism. About 40% of ETH is “soft-locked” or held as collateral in DeFi services, which reduces its circulating supply and can increase its value. If ETH goes above the $4,000 mark, some analysts believe that it can rally to $10,000. Since the majority of assets in Canadian and European ETF ETFs are held by shareholders, their exclusion from approved ETH ETFs is not expected to negatively impact income streams.
The recent approval of Ethereum (ETH) spot exchange-traded funds (ETFs) in the United States has created a wave of optimism among crypto enthusiasts and investors.
These ETFs, which hold ETH directly, are expected to attract huge revenues, with some estimates suggesting that they could reach $4 billion in five months of trading.
Crypto analytics firm K33 Research based its forecast on a comparison between existing ETH-based exchange-traded products globally and similar Bitcoin (BTC) products with assets under management.
The company is a key indicator of institutional interest, considering the amount of open interest in futures contracts on the Chicago Mercantile Exchange.
As ETH ETFs prepare to launch, many analysts predict that Ethereum will outperform Bitcoin in the second half of this market cycle.
This optimism stems from several factors, including lower operating costs for ETH validators compared to BTC miners, token incentives resulting in less selling pressure, and the token burning mechanism introduced with the implementation of EIP-1559.
Another factor contributing to the bullishness surrounding ETH is the large amount of tokens that are “soft-locked” or used as collateral in DeFi services. About 40% of ETH is locked up in this way, effectively reducing its circulating supply and potentially driving up its value.
Some analysts, such as Jelle from CryptoJelleNL, suggest that ETH may rise to $10,000 if it manages to cross the $4,000 mark. This forecast is based on a multi-month falling wedge pattern and successful detection of key support levels.
$ETH allowed EFAs, breaking out of the falling wedge, regained key support and is now consolidating above that level.
Seeing a lot of people overcomplicating things here. So as long as prices hold above this area, there is no reason for a bearish reversal.
Hold on tight and enjoy the ride. pic.twitter.com/Gvn0MhnKsV
— Jelle (@CryptoJelleNL) June 4, 2024
The approved ETH ETFs do not include rewards, a decision likely made to appease regulators. While some argue that this omission could lead to low demand, K33 Research disagrees, pointing out that the majority of assets in Canadian and European ETFs are held in non-stock funds.
