Mikkel Rosenvold
2 weeks ago

Analyst: Ethereum set for bull run after ETF approval

Ethereum's market outlook turns bullish with the approval of spot ETFs, attracting significant capital inflow and driving price projections up.

Ethereum's market outlook has turned highly bullish following the approval of its spot ETFs. Crypto analyst Mads Eberhardt from Steno Research projects that these ETFs will attract between $15 to $20 billion in net inflow within a year, despite initial outflows from the Grayscale Ethereum Trust. The approval is expected to drive Ethereum's price to $6,500 by October, with the ETH/BTC ratio anticipated to reach 0.065 later this year.

The U.S. Securities and Exchange Commission (SEC) approved seven Ethereum spot ETFs, a decision that marks a significant regulatory shift. The approval process saw the likelihood of approval rise to 95% from 60% as amended 19b-4 forms were submitted. The S-1 forms, necessary for trading, are expected to be ready within weeks, allowing for a quick launch.

President Biden's administration has shown newfound support for the crypto industry, which extends beyond the Ethereum ETFs. The U.S. House passed the Financial Innovation and Technology for the 21st Century Act (FIT21 bill), aiming to create a comprehensive regulatory framework for the crypto market. This framework designates the Commodity Futures Trading Commission (CFTC) as the primary regulator for digital assets and aims to clarify the distinction between crypto tokens classified as securities and those classified as commodities.

The SEC Chair, Gary Gensler, opposed the FIT21 bill, arguing it would harm investors and create regulatory gaps. However, his influence is waning as more Democrats and major financial institutions, like BlackRock, show support for the crypto industry. Mikkel Rosenvold, a geopolitical analyst at Steno Research, notes that the approval of Bitcoin and Ethereum ETFs marks a breakthrough into institutional money and political support.

The approval of Ethereum spot ETFs is expected to mirror the success of Bitcoin spot ETFs, which saw over $13 billion in net inflows within four and a half months. Despite potential initial outflows from the Grayscale Ethereum Trust, the long-term outlook for Ethereum remains bullish. The inflow from ETFs is projected to significantly impact Ethereum's price and market dynamics.

Ethereum's unique attributes, such as its deflationary supply and staking rewards, coupled with a friendlier regulatory environment, position it for substantial growth. The anticipation of increased liquidity and broader market engagement further strengthens this outlook. As the regulatory environment stabilizes, new use cases and applications for crypto assets are expected to emerge, reinforcing Ethereum's market position.

Overall, the approval of Ethereum spot ETFs is a game-changer, set to drive significant capital inflow and enhance Ethereum's market presence, making it a pivotal moment for the cryptocurrency industry.


The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

4 hours ago Federal Reserve Sees Progress on Inflation, Adjusts Rate Cut Expectations The Federal Reserve has adjusted its forecast for rate cuts this year, citing persistent inflation despite recent progress. High borrowing costs are expected to linger, impacting consumers and the broader economy.
5 hours ago Bitcoin Holds Steady as Fed Maintains Interest Rates: A Sign of Economic Caution In a cautious move, the U.S. Federal Reserve opted to keep interest rates unchanged, causing Bitcoin to hold its ground. Read more about the economic implications and market responses here: "The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year."
8 hours ago High-Stakes Showdown: Tesla Shareholders Decide on Elon Musk’s $56B Pay Package Tesla shareholders are set to cast their votes on Elon Musk's controversial $56 billion compensation package, a decision that could have far-reaching consequences for the company.
11 hours ago USDMXN: A Golden Opportunity USDMXN: A Golden Opportunity Amid Mexican Election Sell-Off, Says Steno Research Analyst
1 day ago EU's New Tariffs on Chinese EVs Hit Tesla and BYD Stocks! Tesla (TSLA) and BYD (1211) Stocks Plummet After EU Tariff Announcement
1 day ago Macro Mondays: Escaping the TRAP of Sideways Markets Andreas Steno, Mikkel Rosenvold And Mads Eberhardt talk macro and crypto
1 day ago EU launches trade war with China In a bold move that has sent ripples through global markets, the European Union has effectively launched a trade war against China. This decision, announced just three days after the European Parliament elections, raises significant questions about the influence and timing of the EU’s legislative body.
1 day ago July Bloodbath: Metals Set for Major Crash? Brace yourselves for a tumultuous July in the metals market! Industry experts are sounding the alarm as cluster risks in metals like gold, silver, and copper threaten a significant downturn. Here's why July could spell disaster for metal investors.
1 day ago 5 Stories To Invest in for Emerging Markets 5 Stories that might interest you if you're into investing in Emerging Markets