Crypto Trader Says He’s “Extremely Long” on Ethereum, Undeterred by Drop Below $3,400
The crypto trader went on to explain why he believes spot Ethereum ETFs will be a huge success, contrary to what some may think.
Cryptocurrency trader Duncan explained why he is “extremely long” Ethereum (ETH) despite the crypto token’s recent drop to around $3,400. He highlighted spot Ethereum ETFs, which he believes could spark a significant rally for ETH.
A ‘Significant Upward Price Shift’ Could Be on the Horizon for Ethereum
Duncan mentioned in an X (formerly Twitter) post that he believes the market is too bearish right now and that there could be a “significant upside re-rating” for Ethereum if Ethereum ETF spot inflows are “anything but horrible”.
First, he noted that asset managers see the cryptocurrency ETF space as a “new frontier” that could generate billions in management fees for them over the next decade. He highlighted how BlackRock has had its most successful product launch to date with its Spot Bitcoin ETF, which he said is already generating $45 million in annual fees just six months after launch.
Based on this, Duncan stated that the Spot Ethereum ETFs represent another “huge opportunity” for these asset managers to launch a product that could bring them similar success as the Spot Bitcoin ETFs and generate hundreds of millions in fees.
Duncan commented that the Spot Ethereum ETFs are “almost as big as the Bitcoin ETF given the base management fees and the future ability to take a fee out of the performance of the investment. Duncan also alluded to an interview that Scott Melker (aka Wolf Of All Streets) had with VanEck’s Director of Digital Asset Research, Matthew Sigel, to emphasize how these asset managers feel about the Spot Ethereum ETFs.
From what was said during the interview, Duncan noted how VanEck is betting on Spot Ethereum ETFs to spark a “reflexive rally” in ETH, which Sigel said could make them more money.
Ethereum ETF Spot Issuers Could Provide Narrative for ETH
Duncan attempted to counter the argument of crypto figures like Andrew Kang, who argued that Ethereum has no narrative and that Ethereum Spot ETFs might not be successful as a result.
Duncan asserted that asset managers like BlackRock and VanEck can “literally start narratives on their own.” He added that this narrative could be about BlackRock’s Real World Assets (RWA) blockchain, VanEck’s new stable coin, or the asset managers’ “open app store” thesis.
Duncan said the market could see a “massive ETH rally” if these narratives combine with some “good flows and ETH’s extremely thoughtful features.”
The cryptocurrency trader admitted that this could take some time, but opined that it is naive to think that these asset managers will not deploy significant resources to attract inflows into their Ethereum ETFs on the spot.
Analyst and cryptocurrency trader Tyler Durden shared a similar sentiment when he mentioned that Ethereum hitting $10,000 is the “most asymmetric bet” in cryptocurrencies today. He explained that Wall Street put so much effort into getting Ethereum spot ETFs approved, and now they will make so much money on them while pumping ETH.
The cryptocurrency market is very unpredictable and subject to rapid changes. This recent fluctuation in the value of Ethereum is part of the volatile nature of the cryptocurrency market. Investors and traders are advised to closely monitor market trends and make informed decisions based on the latest data.
By Audy Castaneda