Ethereum ETF inflows could hit $10B, sending ETH to new highs — Analyst

Ether exchange-traded funds (ETFs) will attract up to $10 billion in new inflows in the months after launch and send Ether prices soaring to all-time highs by the end of the year, Tom Dunleavy, a managing partner at crypto investment firm MV Global, told Cointelegraph.

“We saw $15 billion in flows for Bitcoin. I think we’re probably going to see $5 billion to $10 billion for Ethereum,” Dunleavy said. “I expect a very positive price impact sending us to new all-time highs by early Q4.”

Eight spot Ether ( ETH ) ETFs are awaiting a final signoff from United States regulators and are widely expected to begin trading imminently, possibly as soon as this month. The funds will join an existing roster of around a dozen Bitcoin ( BTC ) ETFs, which started trading in January. Collectively, BTC ETFs currently manage approximately $15.9 billion.

Related: Ethereum ETFs ‘close to the finish line’ — Bitwise exec

Dunleavy said he expects ETH ETFs to attract around $1 billion per month as a “base case” for the next few months. He added that, compared to BTC, ETH is “less available on exchanges, mean[ing] thinner order books and less to purchase,” and thus ETH’s spot price will be even more responsive to buying demand from ETFs than BTC’s.

“The BTC ETF led to a price appreciation of 36% from the January 10th launch date to the peak and >50% from the time of initial speculation and rumors,” Dunleavy wrote in a Q2 investor memo shared with Cointelegraph.

“We believe that there will be strong buy pressure with a much more clear narrative that traditional investors can understand. ETH has cashflows. It can be described as a tech stock, the app store of crypto, or an internet bond […] This is a much easier sell for financial advisors than ‘digital gold,’” according to the memo.

So far this year, ETH’s performance has lagged BTC’s, with relatively deeper drops during downturns, according to data from Cointelegraph Markets Pro and TradingView. Dunleavy cautioned that a rebound in ETH’s performance may not filter into altcoins, in part because of a lack of overlap between crypto’s institutional and retail markets.

Ether ETF investors “are not going to be users who were onchain. They’re going to be users who were holding the stuff in their 401k,” Dunleavy said.

Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame