Bitwise’s Chief Information Officer predicts $15 billion will flow into Ethereum ETFs within 18 months. Ethereum ETFs are expected to attract substantial institutional investments, solidifying ETH’s market position.
Anticipation for an Ethereum (ETH) ETF launch has reached fever pitch, with 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 several applicants will submit revised S-1 forms by July 8th.
Nate Geraci, President of ETF Store, suggests final approval is expected by July 12th, laying the groundwork for a launch week starting July 15th.
Will Ethereum ETF see a $15 billion influx? Bitwise’s CIO, Matt Hougan, expresses confidence in Ethereum’s appeal to institutional investors, a sentiment not universally shared.
In a video segment with analyst Scott Melker, Hougan revealed observations from European and Canadian markets that bolster his optimism for similar success in the U.S. Ethereum has long attracted substantial investments in these regions.
Hougan’s analysis extends beyond speculation, delving into strategic dialogues with major financial institution leaders.
A conversation with a consulting firm valued over $100 billion indicates readiness to diversify investments into Ethereum post-official ETF launch, underscoring growing financial sector satisfaction with cryptocurrencies as a legitimate asset class.
Moreover, Hougan challenges the mainstream notion of high correlation between cryptocurrencies and traditional financial markets.
He believes cryptocurrencies generally operate independently from traditional market movements, aside from recent economic measures leading to temporary adjustments.
This independence is crucial for investors seeking diversified portfolios and risk-adjusted returns.
Struggles for Ethereum: Market downturns and surge in liquidations
Amid broader market downturns, Ethereum’s performance mirrors Bitcoin’s decline, dropping approximately 6.2% in the past 24 hours to a current trading price of $3,139.
This significant decline has led to substantial losses for many traders.
Data from Coinglass 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 totaling $70.16 million, with short positions at $6.35 million.
Market intelligence platform Santiment reports a decline in public interest in Ethereum, exacerbating the situation.
Furthermore, CryptoQuant’s data highlights Ethereum’s estimated leverage ratio across all exchanges has risen to 0.392, indicating increased risk of volatility or further liquidations due to the relative increase in leveraged positions compared to asset market value.
Read Ethereum’s (ETH) Price Forecast 2024-25
Despite these challenges, not all Ethereum indicators point bearish.
AMBCrypto reports a recent increase in the number of decentralized applications (dApps) on Ethereum, suggesting continued robust activity in some areas of the Ethereum ecosystem.