Ethereum
Ethereum ETF Inflows Could Hit $10 Billion, Propelling Ether to New ATH
Ethereum ETF Inflows Could Trigger New All-Time High for the Asset When ETFs Launch, Analysts Say. The recently approved Ethereum Spot ETFs are garnering a lot of attention ahead of their launch, with experts predicting just how high they will send the Ether asset. Cryptocurrency exchange Gemini recently predicted that the ETF can expect to see $5 billion in net inflows in its first 6 months. However, a new analysis suggests that figure could double.
Tom Dunleavy, managing partner at crypto investment firm MV Global, believes that Ethereum ETF inflows could surpass $10 billion. “We’ve seen $15 billion in inflows for Bitcoin. I think we’re probably going to see $5 billion to $10 billion for Ethereum,” Dunleavy told CoinTelegraph. “I expect a very positive impact on price, which would propel us to new all-time highs by the beginning of Q4.”
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How will Ethereum behave once ETFs are launched?
Currently, nearly a dozen Ethereum ETF filings are awaiting final approval before the asset can hit the market. After Bitcoin Spot ETFs were approved in January, the asset exploded in the first few weeks, catapulting BTC to an all-time high in March. Ethereum Spot ETFs are expected to do the same for Ether, which is currently the second-best performing crypto asset by market cap. Ether is currently trading at $3,136.48, and its all-time high was $4,721.07 in May 2021.
Dunleavy said he expects ETH ETFs to attract around $1 billion per month as a “base case” for the coming months. Given that the asset is “less available on exchanges,” according to the MV Global representative, it could see more hype and demand, quickly propelling the currency to new highs.
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Over the past 24 hours, Ether has increased by almost 2%. Currently, the asset’s price is trading above $3,100, but some investors are still disappointed with the asset’s performance. However, the long-term outlook for Ethereum after the ETF launch is extremely bullish. Just last week, Van EckFidelity and other issuers of Spot Ethereum ETFs have filed amended S-1 forms with the SEC, bringing the product one step closer to launch. Additionally, experts are now predicting that the investment vehicle will begin trading within the next two weeks.
If this launch date prediction proves to be correct, the price of Ether could explode by the end of 2024, as Tom Dunleavy suggests. The ETF asset will likely mimic the performance of Bitcoin ETFs earlier this year. Therefore, expect a frenzy around Ethereum after the ETF launches, and watch for a huge surge in inflows during the first few days of the ETF’s arrival.