Bitwise’s Chief Information Officer predicts that within 18 months, $15 billion will flow into an Ethereum ETF. The Ethereum ETF is expected to attract significant institutional investments, solidifying ETH’s market position.
Anticipation for the launch of an Ethereum (ETH) ETF has reached fever pitch, with many experts speculating on potential release dates. Industry analysts increasingly believe the ETF could launch as early as mid-July.
According to Bloomberg, recent developments indicate multiple applicants will submit amended S-1 forms by July 8.
Nate Geraci, President of ETF Store, anticipates final approval by July 12, potentially laying the groundwork for a launch during the week of July 15.
Will an influx of $15 billion pour into the Ethereum ETF?
Bitwise’s CIO Matt Hougan expresses confidence in Ethereum’s appeal to institutional investors, a sentiment not universally acknowledged to date.
In a video segment with analyst Scott Melker, the CIO revealed that observations from European and Canadian markets bolster his optimistic outlook for similar success in the U.S. Ethereum has consistently attracted substantial investment in these regions.
Hougan’s analysis goes beyond speculation, delving into strategic dialogues with leaders of major financial institutions.
A conversation with a consulting firm valued at over $100 billion indicates readiness to diversify investments into Ethereum post-official ETF launch, underscoring broader financial acceptance of cryptocurrencies as a legitimate asset class.
Furthermore, Hougan challenges the mainstream belief in high correlation between cryptocurrencies and traditional financial markets.
He contends that, apart from recent transient adjustments due to specific economic measures, cryptocurrencies generally operate independently from traditional markets.
Such independence is crucial for investors seeking diversification and risk-adjusted returns.
Struggling Ethereum: Market Slump and Surge in Liquidations
Amid broader market downturns, Ethereum’s performance mirrors Bitcoin’s decline, dropping approximately 6.2% to a current trading price of $3,139 over the past 24 hours.
This significant decrease has led many traders to incur considerable losses.
Coinglass data shows 113,506 traders were liquidated in the past 24 hours, totaling $317.34 million. Ethereum-related liquidations accounted for about $76.51 million, primarily from long positions at $70.16 million and short positions at $6.35 million.
Market intelligence platform Santiment reports a decline in public interest for Ethereum, further exacerbating the situation.
Additionally, CryptoQuant’s data highlights Ethereum’s estimated leverage ratio across all exchanges has risen to 0.392, suggesting increased risk of volatility or further liquidations as leverage positions grow relative to asset valuations.
Read Ethereum’s (ETH) price predictions for 2024-25.
Despite these challenges, not all Ethereum metrics are bearish.
AMBCrypto reports a recent uptick in the number of decentralized applications (dApps) on Ethereum, indicating continued strong activity in certain sectors of the Ethereum ecosystem.
