Ethereum
Ignore Ethereum dips, says Bernstein – firms ‘aggressively’ pursuing ETFs – DL News
- Bears say Ethereum ETFs will be a non-event.
- But Bernstein argues that cryptography has several advantages.
The crypto rally has stalled and bears say Ethereum spot exchange-traded funds won’t be the bargain investors were hoping for.
However, Bernstein analysts say there are reasons to be optimistic.
“The new crypto bull cycle is a multi-year opportunity, and near-term weakness could be another opportunity to find attractive entry levels,” Bernstein analysts Gautam Chhugani and Mahika Sapra wrote in a note to investors this week.
They argued that the growing adoption of cryptography, that of Donald Trump The pro-crypto stance and the powerful industry lobby scoring new victories signal that a rally is coming.
Although they did not specify when, they have already predicted that Bitcoin will reach $200,000 over the next year.
The report comes as Bitcoin and Ethereum have fallen 16% and 17% respectively since March.
Ethereum ETF
The launch of Ethereum spot ETFs could change that.
The United States Securities and Exchange Commission is expected green light seven Ethereum ETFs starting next week.
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Investment company QCP Capital said the event could trigger a 60% rally in the second-largest cryptocurrency.
Yet not everyone is equally thrilled. The Bears
“Crypto natives’ expectations are inflated and disconnected from the true preferences of TradFi allocators,” Andrew Kang, managing partner of investment firm Mechanism Capital, wrote on X.
Ethereum “has much less traction as a key portfolio allocation for many large non-crypto native capital groups.”
Bernstein agreed that several obstacles could hold Ethereum back despite ETFs.
Duncan Trenholme, co-head of digital assets at TP Icap, the world’s largest securities broker, recently said DL News it has struggled to sell Ethereum to its customers, in part because Ethereum lacks the digital gold narrative that Bitcoin has.
Reasons for optimism
And Bernstein admitted that even if the influxes and a influx of liquidity As seen after the launch of Bitcoin ETFs, this will happen on a smaller scale for Ethereum ETFs compared to Bitcoin ones, the bullish trend is expected to prevail in the long term.
Chhugani and Sapra argued that Ethereum is becoming a primary platform for the tokenization of traditional assets, which is what financial powerhouses look like. black rock are interested.
Trump’s endorsement of crypto suggests that a Republican victory in the presidential election would pave the way for friendlier policies.
In other words, Bernstein said the drivers of the rally still remained.
“Asset managers interested in crypto remain committed to growing this business aggressively.”
Eric Johansson is the editor-in-chief of DL News. Do you have any advice? Send him an email to eric@dlnews.com.