"ETH will go to zero" - this is what everyone has been saying recently. However, I analyzed the data in depth and found a shocking fact. Please do me a favor and like, comment or bookmark this article if you find it valuable!
After the huge success of the $BTC ETF, all eyes are now on $ETH. Despite all the criticism and negative opinions, the situation with ETH is more complicated. In this post, I will share why your bullish sentiment on ETH may not be enough.
$BTC ETF’s Successful Experience
Let’s quickly review the $BTC ETF’s journey:
- BTC doubles before ETF
- Down after approval due to selling pressure from Grayscale
- Then it rises again as inflows exceed outflows
While it hasn’t been easy, BTC has grown a lot since then. Key stats for the $BTC ETF:
- Cumulative assets under management reached $50 billion
- $14.5 billion in inflows since launch
- Net inflows of $4.5 billion (excluding delta-neutral flows)
These impressive numbers show real interest from institutions and set a positive trend for other cryptocurrencies.
$ETH ETF Potential
Soon ETH will take over the ETF baton, but many people think it is not a big event, and the expected inflow is 15-20% of BTC. Due to the 3x difference in market capitalization, even 15% inflow is a huge success for ETH, and here are the reasons:
Although the S-1 application has not yet been approved, 7 issuers have recently updated their applications. Analysis predicts that spot trading will be launched on July 2. Similar to the previous situation of BTC ETF, this may be the calm before the storm.
BlackRock invested $10 million in the upcoming ETH ETF. Their track record speaks for itself, with 575 approved ETFs and only 1 rejection. If the world's largest hedge fund is bullish on an ETH ETF, why aren't you?
ETF Application and ETH Staking
Many ETF applications have now removed ETH staking from their filings. As a result, institutions investing in ETH ETFs will not receive passive income from ETH staking. This move is intended to accelerate the launch of ETFs and ensure global approval. However, it is likely that soon after these ETFs are launched, the funds will reintroduce ETH staking to attract more investors.
ETH Open Interest
As a key platform for institutional futures trading, CME has seen a surge in open interest since November. In May, rumors of ETF approval triggered a sharp rise. The conclusion? Institutions are betting on the upcoming ETF approval and are bullish on ETH in the long term.
SEC’s dispute with ETH ends
The biggest concern of major investors has now been resolved. ETH is officially not a security. Now, let’s look at why institutions are paying attention to ETH and what makes it unique.
Advantages of ETH
$ETH has had many labels:
- Also known as "ultrasonic currency" due to its burning mechanism
- Known as "Internet Bonds" due to their staking benefits
- Called “settlement layer assets” due to L2s
- Considered to be a “better Bitcoin”
Today, the ETH ecosystem is the foundation of the current crypto market and is trusted by millions of people.
ETH is a deflationary asset, which makes it different from other assets. For example, global currencies, crypto assets, and gold dilute their supply over time, while ETH continuously reduces its supply, thereby increasing its value.
By staking ETH, you can earn real returns. These returns come from fees and network activity, with an annualized rate of nearly 3-4%, similar to US Treasury bonds.
Other bullish facts
- ETH balance on centralized exchanges is at an all-time low
- ETHE discount reduced from 50% to 1.5%, showing more confidence from big capital
- ETH becomes more scalable due to the emergence of L2 and is more scalable to ordinary
It becomes cheaper for users
What Happens After the ETH ETF Is Approved?
The approval process is well underway. Spot ETFs brought regulatory clarity and new capital to BTC, and ETH can expect the same results. In addition, the approval of the ETH ETF could boost the entire altcoin market.
The impact of altcoins
The usual alt-season path—from BTC to ETH to large-cap to mid- and low-cap—may begin after the launch of the ETH ETF. Initially, BTC outflows and new capital will flow into ETH and eventually to other altcoins.
#Key Points:
- Institutions are bullish on ETH
- Only 15-20% of BTC ETF inflows are needed to trigger BTC-like growth
- Potential catalysts not yet priced in
- A successful ETH ETF launch could pave the way for ETFs for other altcoins
in conclusion
The future of ETH is much brighter than many people think. With ETF approval approaching and active institutional participation, ETH is expected to reach new heights and even spark an entire altseason. Continue to watch ETH and prepare for potential gains in the future!
