Since the Bitcoin spot ETF was launched in the United States, there have been a total of $31 billion in inflows, while ETH/BTC has dropped nearly 25% during this period. Today, Ethereum has created a level playing field with its own ETF. Joseph Ayoub, who was previously responsible for encryption research at Citi, believes that ETH is seriously undervalued and should now "buy the news"!
The development trajectory of Bitcoin spot ETFs
After Joseph Ayoub left Citi, he founded Rug AI to focus on the development of AI and cryptocurrency.
He pointed out that BTC had previously risen by 30% due to approval rumors, and had further risen by 40% before official trading on 1/11. Bitcoin spot ETF inflows exceeded $31 billion in 2 months, and BTC rose by more than 90%. From bottom to high, Bitcoin is up a total of 170%.
This is the first credible sign of institutional adoption. There were inflows from 500 holders of hedge funds, advisory firms, asset managers and more.
(More than four hundred 13F reports hold BlackRock IBIT, and Morgan Stanley holds nearly 270 million GBTC)
How is ETH different from BTC?
If the Ethereum ETF could have even a fraction of the traffic of the Bitcoin ETF, it would lead to a significant increase in the price of ETH.
Ayoub refutes ETH skeptics’ arguments
How is ETH different from BTC? ETH skeptics will argue: BTC is the king of crypto assets and ETH cannot compete with it. The argument for selling ETH is:
It’s hard to understand (elderly people don’t understand “Ethereum”, and the ETH ETF lacks traditional market selling points?)
Grayscale ETHE shows capital outflows
Institutions don’t know what ETH is
Ayoub refutes these views and believes that ETH is more attractive than BTC!
ETH is decentralized computing
ETHE outflows are similar to GBTC outflows
Institutions prefer Ethereum
Larry Fink and many other institutional celebrities are optimistic about ETH
He also cited the remarks of many celebrities mentioning Ethereum:
Ken Griffin (CEO of Citadel): ETH will replace Bitcoin
Carl Icahn (American business tycoon): ETH is a storage of value and payment system
Stanley Druckenmiller (American billionaire and former hedge fund manager): ETH may eventually surpass BTC
Jamie Dimon (CEO of JPMorgan Chase): Use cases for ETH (He has mentioned many times that he hates BTC and doesn’t know what the use of Bitcoin is)
Larry Fink (BlackRock CEO): ETH is about tokenization
(BlackRock CEO Larry Fink is optimistic about Ethereum ETF: Towards a tokenized future)
ETH may be more popular than BTC
Additionally, Ayoub offered reasons why ETH might be more popular than BTC:
ETH has a deflationary supply and is scarcer than BTC
ETH has native yields and Tradfi loves yields
ETH requires only 0.01% of energy to operate and is ESG compliant
ETH has utility and embedded applications that create value
Issuers will push for ETFs, ETH price remains undervalued
Additionally, major issuers such as BlackRock and Fidelity generated record revenue from Bitcoin spot ETFs. BlackRock’s IBIT has $16.3 billion in BTC AUM and charges 0.3%, which will bring it $48.9 million in annual revenue. This represents 1% of their revenue and 3.2% of their net income.
Ayoub believes issuers will work hard to allow Ethereum ETFs to flourish.
And assuming that the demand for ETH (proportional to its market capitalization) is roughly the same as that of BTC, one can expect the price of ETH to rise significantly. And the Ethereum ETF has still not started trading, which also provides room for speculation.
Ayoub believes that the ETH/BTC ratio may also return above 0.06, or even to 0.08, supported by capital inflows.
(This article is a personal opinion, not investment advice, please DYOR)
This article ETH is undervalued, the adoption of Ethereum spot ETF should “buy the news”! First appeared in Chain News ABMedia.
