Ethereum
Ethereum ETFs to See $500 Million in Inflows in First Week – Analyst Says – DL News
- Ethereum ETFs are about to go live.
- Not only could prices rise, but analysts also expect massive inflows into funds.
Investors will pour up to $500 million into Ethereum exchange-traded funds in their first week.
This is according to Lennix Lai, chief commercial officer of cryptocurrency exchange OKX.
“Although the AUM of ETH ETFs may not be as high as BTC ETFs, their trading volumes can reach a similar level,” he told DL News.
Lai added that the launch of the new funds would invariably trigger a new crypto rally, echoing the general sentiment in the industry.
Nine potential candidates are waiting for the U.S. Securities and Exchange Commission to give their ETFs the green light.
Market Observers to wait for Ethereum ETFs will launch sometime after Independence Day.
Record entries
Lai is not the only one who is optimistic.
Jacob Joseph, analyst at CCData said DL News that flows into spot Ethereum ETFs will reach $3.9 billion in the first 100 days of trading.
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Bitwise Chief Investment Officer Matt Hougan also said that spot Ethereum ETFs could see $15 billion in inflows in the first 18 months of trading.
Price action
Not only would ETFs make crypto more attractive to investors, but the fact that 27% of Ethereum is locked up could send prices soaring, experts say.
“This could potentially lead to short-term shortages, hence price increases, and make ETH an attractive option for institutional asset allocation,” Lai said.
Founder of Lekker Capital Quinn Thompson suggested Ethereum could hit $7,000.
Of course, not everyone is convinced that a rally will start when these funds are launched.
“Crypto natives’ expectations are overstated and disconnected from the true preferences of TradFi allocators,” Andrew Kang, managing partner at investment firm Mechanism Capital, wrote on X.
He also argued that while Bitcoin hit record highs thanks to the launch of Bitcoin spot ETFs, that was only a contributing factor — with big players like MicroStrategy buying the asset driving demand.
Co-director of digital assets at broker-dealer giant TP Icap, Duncan Trenholmesaid the same way DL News that Ethereum ETFs will be harder to sell for large-scale institutional investors like pension funds.
Why? Because Ethereum doesn’t have the clear narrative that Bitcoin has as a store of value.
When it comes to Ethereum, Trenholme said he has fielded questions from institutional clients such as: “Is Ether just Bitcoin Lite?”, “How is it different from Bitcoin?” or “Why should it have a place in an investment portfolio?”
Despite the downward trend, analysts at the research firm Bernstein claim that the launch of Ethereum ETFs will lead to a long-term price increase as they will drive greater adoption.
Eric Johansson is the editor-in-chief of DL News. Do you have any information for us? Send him an email at eric@dlnews.com.