Will Spot Ethereum ETF Trigger a New Crypto Surge? Here’s What to Expect

The post Will Spot Ethereum ETF Trigger a New Crypto Surge? Here’s What to Expect appeared first on Coinpedia Fintech News

As spot Ether ETFs near their launch, Binance CEO Richard Teng expects them to bring a steady and substantial influx of capital over time. While others predict significant immediate impacts, Teng believes the initial effects will not be exciting. 

Get ready for a shake-up in the crypto world!

Could Ether become more volatile than Bitcoin? Will the price skyrocket or plummet? Dive deeper to discover what experts say and how this could impact your crypto portfolio.

Here’s what he expects:

Teng predicts that while the initial inflows and performance of these ETFs might not be explosive, there will be a stable capital inflow influenced by macroeconomic factors such as US monetary policy and election results.

He notes that institutional involvement could eventually drive significant growth in ETF liquidity, making ETH an attractive long-term investment. However, he also noted that the lack of a staking component in these ETFs, which would offer additional yield to investors, might limit their attractiveness. SEC commissioner Hester Peirce mentioned that the inclusion of a staking component might be reconsidered in the future, potentially enhancing the appeal of these ETFs.

Ether ETF Launch Timeline & Crypto Impact

Katherine Dowling of Bitwise mentioned that spot Ether ETFs are close to approval, with the SEC requesting final filings for a launch on July 23. Some experts, like Tom Dunleavy from MV Global, forecast $5 to $10 billion in inflows soon after the launch, potentially pushing ETH to new highs.

Whereas, Bitwise CIO Matt Hougan expects $15 billion in ether ETF inflows in the first 18 months. Bloomberg analyst James Seyffart anticipates ETF to take over 20% to 25% of the bitcoin funds’ in its first-month revenue.

Lessons from Bitcoin ETFs

Bitcoin ETFs, launched in January, have attracted nearly $15 billion from investors, initially causing BTC’s price to surge. This rally has since slowed down, with experts noting that most ETF inflows are from arbitrage strategies, not outright bullish bets. This cautious approach may also apply to ether ETFs.

Building on Positive Momentum

With millions at stake, Teng views the launch of spot Ether ETFs as a significant milestone for Ethereum and the broader digital asset market, enhancing the legitimacy and accessibility of crypto investments. He draws parallels to the January launch of spot Bitcoin ETFs, suggesting that Ether ETFs will similarly attract a broader range of investors by addressing concerns about legitimacy, compliance, and security.

The market now depends on ETH ETF performance following bloodshed. Are you ready for volatility?