With Ethereum's (CRYPTO: ETH) ETF trading launch to come in next week, traders voice optimistic predictions for inflows and the price of ETH.
What Happened: Crypto analyst Lark Davis predicts the ETFs could lead to a new all-time high very soon. He reiterates that Bitcoin (CRYPTO: BTC) ETFs started trading in January, causing a new all-time high only 64 days after their launch.
$ETH could make a new all-time high very soon.
— Lark Davis (@TheCryptoLark) July 18, 2024
Here's why:...
Ethereum's market capitalization is currently 32% of Bitcoin's and it is "more deflationary," according to the analyst. He thinks traders should "front-run before the ETFs launch next week."
On the contrary, crypto trader Jacob Canfield sees Ethereum ETFs as less bullish than expected for the first few months, predicting a wave of outflows similar to the Bitcoin ETFs.
The BlackRock and VanEck ETFs will feature fees of 0.25%, but the Grayscale Ethereum Trust (BATS:ETHE) will remain at a 2.5% fee. The trader concludes that, "outflows vs inflows will be a very important metric, but my guess is that for the first 1-2 months outflows will dominate again."
Also Read: Trump, Bitcoin, Ethereum ETFs, Tokenization: Trader's Reasons For The 'Most Bullish Crypto Setup'
Why It Matters: Bloomberg ETF analysts announced that next week ten Ethereum ETFs, such as the Franklin Ethereum ETF, VanEck Ethereum ETF, Bitwise Ethereum ETF and others will launch.
Crypto and stock market account Income Sharks thinks Ethereum looks good and bullish, even if the current pullback extends. On technical grounds, "the double supertrends flipped bullish" and the on-balance volume (OBV) is close to giving the official send-off signal. OBV is a technical trading momentum indicator that uses volume flow to predict changes in stock price.
Crypto trader Daan Crypto Trades noted that Ethereum is getting compressed after the initial move-up due to the ETF news. With Ethereum sitting on top of the daily 200MA/EMA, he predicts it will "eventually break out surrounding the ETF launch." He also expects higher optimism in terms of ETF flows.
What's Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
- Ethereum ETFs To Attract Over $5B In Inflows, But Returns Could Be Lower Than Expected: Citi
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