- Bitwise CIO predicts $15 billion in Ethereum ETF inflows within 18 months.
- Ethereum ETFs are expected to attract significant institutional investment, strengthening ETH’s market position.
Waiting for the launch of Ethereum [ETH] ETFs have reached an all-time high, with many pundits speculating about potential launch dates. Industry analysts are increasingly confident that ETFs could debut in mid-July.
Recent developments suggest that many applicants will file their amended S-1 forms by July 8, as reported by Bloomberg.
Nate Geraci, president of the ETF Store, TOLD that final approvals could be expected by July 12, potentially setting the stage for a launch during the week of July 15.
Ethereum ETFs Will See $15 Billion Inflows?
Bitwise CIO Matt Hougan has EXPRESS confidence in Ethereum’s appeal to institutional investors, a sentiment that was not shared until now.
In a video with analyst Scott Melker, the CIO reveals that observations from the European and Canadian markets, where Ethereum consistently attracts significant investment, reinforce his optimistic outlook for similar success in the US market.
Hougan’s analysis extends beyond simple speculation, delving into strategic conversations with executives from major financial institutions.
One such dialogue with a $100+ billion advisory firm revealed a willingness to diversify into Ethereum with the launch of an official ETF, highlighting the broader financial community’s growing comfort with cryptocurrency as a legitimate asset class.
Additionally, Hougan challenges the prevailing narrative of high correlation between cryptocurrencies and traditional financial markets.
He argues that, except for brief periods of expansion due to extraordinary economic measures, such as those seen recently, cryptocurrencies generally function independently of traditional markets.
This independence is essential for investors seeking diversification and risk-adjusted returns.
The Ethereum War: Market Crashes and Rising Liquidations
Amid the broader market decline, Ethereum’s performance mirrors the first drop in Bitcoin, with ETH down roughly 6.2% in the past 24 hours to a current trading price of $3,139.
This significant decline has resulted in significant losses for many traders.
Source: Coinglass
Data by Coinglass reveals that over the past 24 hours, 113,506 traders have liquidated, contributing to total liquidations of $317.34 million.
Of this, Ethereum-related liquidations account for about $76.51 million, mostly in long positions, amounting to $70.16 million compared to $6.35 million in shorts.
Making matters worse, market intelligence platform Santiment has reported a drop in Ethereum open interest.
Source: Sentiment
For more, data by CryptoQuant states that the estimated leverage ratio of Ethereum across all exchanges has increased to a notable 0.392. This indicates an increase in leverage positions relative to the asset’s market capitalization, which may suggest increased risk of further volatility or liquidations.
Source: CryptoQuant
Read Ethereum’s [ETH] Price Forecast 2024-25
Despite these challenges, not all indicators for Ethereum are bearish.
AMBCrypto has reported a recent one growth in Ethereum decentralized application (dApp) volume.suggesting that some areas of the Ethereum ecosystem continue to see robust activity.