Ethereum ETF inflows could spark a new all-time high for the asset upon the launch of the ETFs, according to analysts. The recently approved Spot Ethereum ETFs are earning a lot of attention before their launch, with experts predicting how high they will send the Ether asset. Cryptocurrency exchange Gemini recently predicted that the ETFs can expect to see $5 billion in net inflows over its first 6 months. However, new analysis suggests that that number may double.
Tom Dunleavy, a managing partner at crypto investment firm MV Global, believes that the Ethereum ETF inflows could soar beyond $10 billion. “We saw $15 billion in flows for Bitcoin. I think we’re probably going to see $5 billion to $10 billion for Ethereum,” Dunleavy said speaking to CoinTelegraph. “I expect a very positive price impact sending us to new all-time highs by early Q4.”
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How Will Ethereum Fare Once ETFs Launch?
Currently, nearly a dozen Ethereum ETF filings are awaiting final approval before the asset can launch on the market. Following the approval of Spot Bitcoin ETFs in January, the assets exploded in the first few weeks, catapulting BTC to an all-time high in March. Spot Ethereum ETFs are expected to do the same for Ether, which is currently the second-highest-performing crypto asset by market cap. Ether currently trades at $3,136.48, and its all-time high was $4,721.07 in May 2021.
Dunleavy said he expects ETH ETFs to attract around $1 billion per month as a “base case” for the next few months. Since the asset is “less available on exchanges” according to the MV Global representative, it may see more hype and demand, thrusting the currency to new highs quickly.
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The last 24 hours have seen Ether increase almost 2%. Currently trading above $3,100, there are still investors disappointed in the asset’s performance. However, the long-term outlook for Ethereum post-ETF launch is extremely bullish. Just last week, VanEck, Fidelity, and other Spot Ethereum ETF issuers filed amended S-1 forms with the SEC. That brought the product one step closer to launch. Moreover, experts are now predicting the investment vehicle will begin trading within the next two weeks.
If this launch date prediction rings true, Ether could explode in price by the end of 2024 as Tom Dunleavy suggests. The ETF asset is likely going to mimic the performance of Bitcoin ETFs earlier this year. Therefore, expect a frenzy around Ethereum post-ETF launch, and watch out for a huge surge in inflows during the opening days of the ETF’s arrival.