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Ether Spot ETF Inflows Will Push ETH to Beyond $5K: Bitwise

Jul 16, 2024
  • Launch of spot ether ETFs in the U.S. will push the price of the crypto to all-time highs above $5,000, the report said.
  • Bitwise said money flowing into new ether spot ETFs will have a larger impact than it did for bitcoin.
  • Ether spot ETFs are expected to draw in $15 billion of net inflows in the first 18 months.
As a seasoned researcher with extensive experience in the cryptocurrency market, I have closely followed the developments surrounding the upcoming launch of spot Ether Exchange-Traded Funds (ETFs) in the US. Based on my analysis of the current market trends and historical data, I am confident that the price of Ether will reach new all-time highs above $5,000 following the launch.As a researcher studying the cryptocurrency market, I believe that the upcoming launch of spot Ether (ETH) exchange-traded funds (ETFs) in the U.S., which is predicted to happen next week, will significantly boost the price of Ether and potentially propel it to new all-time highs surpassing $5,000.
The conversion of the $11 billion Grayscale Ethereum Trust (ETHE) into an ETF might not lead to immediate price stability, with potential for erratic market movements initially, as reported by its chief investment officer, Matt Hougan, on Tuesday.

Despite this, Hougan expressed confidence that by the end of the year, the new record highs would have been reached. Furthermore, if investment flows exceeded the expectations of many market analysts, the price could potentially rise even more significantly.

According to Bitwise, Bitcoin (BTC) has experienced a significant surge, climbing approximately 25% since the introduction of spot Exchange Traded Funds (ETFs) in the US markets in January. Additionally, its value has more than doubled, increasing by over 110%, following the market’s anticipation of an potential launch towards the end of last year.

New Ether exchange-traded funds (ETFs) are expected to see a greater inflow of funds than when Bitcoin ETFs were introduced for three key reasons, according to Bitwise. First, Ether’s current short-term inflation rate is zero, whereas Bitcoin’s was 1.7% when its versions debuted, resulting in substantial demand colliding with no available supply. Second, Ethereum stakers, unlike Bitcoin miners, do not have to sell their staked coins, and approximately 28% of Ether is currently being staked and taken out of circulation.

According to the report, Ether spot Exchange-Traded Funds (ETFs) are predicted to thrive and attract approximately $15 billion in investments during the initial 18-month period of operation.

Last month, Steno Research shared a optimistic perspective towards ethereum in their report. They anticipate that the cryptocurrency will surpass $6,500 by the end of this year as a result of projected investments into spot Ethereum Exchange-Traded Funds (ETFs), along with other favorable factors.

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2024-07-17 11:39