Ethereum
Ethereum at $4,000? Spot ETF approvals give analysts pause…
- Market enthusiasm around ETH ETFs may not be as strong as expected, analysts say.
- Other Market Watchers Think ETH Could Surpass $4,000 After ETF Launch
Doubts about market demand for the American spot Ethereum [ETH] ETFs have progressed, even if analysts maintain a possible launch by early July. In fact, there has been some debate over whether ETH ETFs can attract demand on a similar scale to spot. Bitcoin [BTC] ETFs too.
To give some perspective, according to Farside Investors dataBTC-related products have now reached +$14 billion in net flows and over $50 billion in assets under management (AUM) since their debut in January.
However, most analysts believe that ETH ETFs could only meet a fraction of the aforementioned demand. For example – Quinn Thompson, founder of crypto hedge fund Lekker Capital, recently reinforced the overall market tepidity. outlook.
“The market is overly dampening the positive impact of the upcoming ETH ETF.”
Mixed Opinions on ETH ETFs
JPMorgan analysts are also in the bearish camp. They recently forecast that ETH ETFs could attract approximately $1-3 billion in net inflows during the second half of 2024.
Another bearish figure was shared by Bloomberg ETF analyst Eric Balchunas, who predicted that the products could only capture 20% of the market share of BTC ETFs. His projection was based on the current demand for ETH against BTC in the futures market.
On the contrary, other analysts, like Vetle Lunde of K33 Research, have estimated that demand for ETH ETF products could reach $4 billion in net inflows in the first five months alone.
For example, Matt Hougan, CIO of Bitwise, is in the bull camp and sees the second half of 2024 as full of ‘tailwinds‘ for requesting ETH.
A recent Deribit Insights report also outlined a bullish future based on recent options data. He note,
“A decent clip of September 4,000 ETH calls purchased ($12M premium) and June 65,000 + July 75,000 BTC calls generated increased exposure during December 75 + 90,000 calls, showing increased optimism in the medium term.”
QCP Capital Analysts reiterated This optimism is based on options data, reiterating that ETH could surpass $4,000 and retest its all-time high of $4.8k.
“Despite the uncertainty around receiving the ETH ETF, capturing 10-20% of Bitcoin ETF flows could propel ETH above 4,000, moving closer to its high of 4,800.”
Following: The BNB Recovery Path – Charting the Path to $600