Ethereum is the second spot ETF in the crypto market after bitcoin. This ETF has got a significant opening with over $1 billion as volume and this is historic. This may not be big if we do the comparison with Bitcoin, but this number is certainly not small. This spot ETF made its entry into the market on 23rd July and the first day the volume was over $1 billion. Now we have to spot it here including Bitcoin and Ethereum and through both, we can expect a significant amount of institutional investment in the crypto market, but this might take some time. When we have seen in the case of Bitcoin ETF that the price was down after the spot ETF listing However later on price was increased.
We surely need to understand that Ethereum is not as big as Bitcoin is, hence, we cannot make a comparison between the numbers but if we look at the overall metrics for Ethereum then the start is significant. I don't know why it happens that after the spot listing a dump has been seen in its price and the same has happened for Bitcoin as well in the past. The launch of Ethereum ETF is very good and big news for the crypto market and I anticipate that the impact of this will take some time to be shown in the market. It is something that will bring a positive impact for sure, but it is for the long term and might take some time.
A total of 30583 ETFs were bought on the first trading day of Ethereum ETF and in the year 2024 so far, we have mined a total of 51120 ETFs. It means almost 60% of newly mined Ethereum coins are purchased through ETF in just 1 day. This is a bullish and significant scenario for Ethereum. There are some good things with Ethereum that we should not miss.
- Ethereum is based on PoS (Proof of Stake) hence no selling pressure from miners like we have with Bitcoin
- It provides consistent yield through staking in 2.0 and a huge supply is already locked.
- ETH has got lower inflation rate as compared to Bitcoin
- Also, there would be no dumping from any government or exchange like Mt Gox etc.
Now two assets are going to bring more money in flow through the ETF and all this money will come in the Crypto market. I'll not be surprised if further discussions are also started for another ETF in the market which can be Solana. Exchange-traded funds or ETFs are an alleged way for any institution to be part of the instrument and this is why it is expected that a lot of institutions will come forward to invest in Ethereum ETF. A similar situation has already started with Bitcoin where many companies have invested in this through ETF, but this is just the start as the numbers are expected to grow even more and now with another ETF the combined impact is also going to be bigger. Maybe this can be one of the reasons to trigger the bull run this time which is expected to start from the end of this year or in next year.
Maybe as of now we're not prepared for Ethereum's biggest pump, but this is going to happen. It is hard to predict what value appreciation we are going to see with the Ethereum price, but I expect that two to 3x is highly expected once the Bullrun starts in the market. Again, this cannot be financial advice because what I am expecting is just based on some analysis and historical performance, but it does not mean that it is going to happen the same however there is a possibility that the value appreciation will happen significantly. It is also expected that this time the bull run is going to be even bigger which is why people are expecting the Bitcoin price to cross 150K US dollars and if that happens then Ethereum value can also be expected to be around 10K US dollars.
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