As a researcher with a background in cryptocurrencies and financial markets, I find the potential approval of spot Ethereum ETFs by the SEC to be an exciting development that could significantly impact the broader crypto market. Based on recent reports from K33 Research, I believe that Ethereum could experience a supply shock due to the potential influx of institutional capital into the ETH market.
From a researcher’s perspective, the focus lies on the SEC’s upcoming decision regarding Ethereum spot ETF registrations. According to K33 Research’s latest findings, approximately 1.26 million ETH could be up for grabs within five months following the ETF launch. This potential influx of Ethereum into the market might significantly contribute to an uptrend and possibly lead Ethereum to reach new all-time highs.
Spot Ethereum ETFs to See $4 Billion in Inflows
According to K33 Research’s analysis, Ethereum exchange-traded funds (ETFs) might experience an impressive inflow of approximately $4 billion during their initial five months of operation. The prediction is derived from studying the assets managed in global ETH ETFs and comparing them with Bitcoin ETFs. Additionally, K33 Research examined the open interest in CME Ethereum futures contracts as a significant indicator for institutional investment activity.
From my research perspective, the current open interest (OI) for Ethereum (ETH) futures on the Chicago Mercantile Exchange (CME) represents approximately 23% of the size of Bitcoin (BTC) futures. Yet, since the inception of ETH futures trading on CME in late 2021, there has been a significant surge in demand from institutions, resulting in ETH futures capturing a notable 35% share of BTC futures.
Based on the analysis of these ratios in addition to the $14 billion invested in Bitcoin spot ETFs, K33 Research anticipates that the spot Ether ETFs may attract inflows ranging from $3 billion to $4.8 billion during their first five months of operation.
Based on the present Ethereum price of $3,800, approximately 800,000 to 1.26 million ETH could be amassed through ETFs. This equates to roughly 0.7% to 1.05% of Ethereum’s total circulating supply.
ETH to Outperform Bitcoin
Following the announcement of Bitcoin ETF approval, Bitcoins price surged by an impressive 60% and hit new peaks. According to K33 Research’s analysis, once Ethereum ETFs become available for trading, Ethereum is expected to outshine Bitcoin, marking a significant shift after almost two years of underperformance.
As an analyst, I’d highlight that in its recent research, K33 pointed out a noteworthy finding: the elimination of staking features from Ethereum ETFs won’t significantly hamper inflows into these investment vehicles. This observation holds true for Canadian Ethereum ETFs, where approximately 99% of assets under management are situated in funds without staking involvement. Similarly, European Ethereum products exhibit a comparable trend with 98% of their assets not tied to staking.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- AVAX PREDICTION. AVAX cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- BEN PREDICTION. BEN cryptocurrency
- EUR KRW PREDICTION
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- PHB PREDICTION. PHB cryptocurrency
- ARKM PREDICTION. ARKM cryptocurrency
2024-06-05 07:32