DeFi

Will Spot Ethereum ETFs Live Up to Their Hype? Analysts Speak Out

Published

10 months ago

9 July, 2024

Will Spot Ethereum ETFs Live Up to Their Hype? Analysts Speak Out

Analysts believe that Ethereum ETFs will likely have a smaller market impact than Bitcoin ETFs.

With Ethereum exchange-traded funds (ETFs) set to launch this month, experts disagree on what the funds’ debut will mean for markets.

Analysts are divided on whether the launch will have the same impact as spot Bitcoin ETFs, with the price of BTC surging 58% in the nine weeks since the funds launched to its current all-time high of $73,738.

While some observers predict that the launch of Spot Ether ETFs will be a groundbreaking event, others anticipate that the funds will debut with more buzz than noise.

How will Ether ETFs compare to Bitcoin ETFs?

Ryan Lee, chief analyst at Bitget Research, told The Defiant that Ethereum ETFs will likely see lower trading volumes compared to Bitcoin ETFs.

“Bitcoin and Ethereum are two assets with different fundamentals and distinct commercial appeal,” he said. “When Ethereum ETFs begin trading, ETH will capture about 2.5% of its market cap. If this bullish scenario plays out, the Ethereum spot ETF could see $11.55 billion in AUM.”

Galaxy Research also predicts that inflows will arrive at a slower pace for spot Ethereum ETFs compared to their Bitcoin counterparts.

“We estimate that spot Ethereum ETPs will generate approximately $5 billion in net inflows in the first five months of trading,” said Charles Yu, vice president of research at Galaxy. wrote.

However, many observers have bullish expectations for the price of Ethereum once the ETFs are launched.

Research on shorthand predicted that ETH could potentially reach at least $6,500 later this year after the launch of Ether ETFs, breaking ETH’s previous all-time high by 33%.

Standard Chartered offers an even more optimistic forecast, suggesting that the approval of Ethereum spot ETFs could generate up to $45 billion in inflows in the first 12 months, potentially pushing the price of ETH to $8,000 by the end of 2024.

Others, like Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund, expect news of the ETF launch to trigger a brief, modest rally, followed by a strong “sell the news” event.

Ethereum ETFs Exclude Staking

Analysts say the lack of staking rewards in ETF filings is one factor dampening enthusiasm.

Since September 2022, Ethereum has leverage Proof of Stake consensus to derive security from staking. Node operators must lock up at least 32 ETH as collateral to participate in validating transactions and securing the network. In exchange, stakers receive a share of the newly created ETH as a reward.

In May, BlackRock, Grayscale and Bitwise updated their SEC applications to withdraw staking provisions. These measures were taken following a dialogue between potential issuers and the SEC.

“Unstaked Ethereum carries an opportunity cost by forgoing the benefits of staking rewards, including inflation rewards, priority fees, and MEV revenue,” Lee said. “This opportunity cost makes spot Ethereum ETFs less attractive to crypto-savvy institutions… However, traditional investment institutions constrained by corporate regulations and legal frameworks can only gain exposure through ETFs and would not face the opportunity cost of staking.”

Fee waivers to attract institutional investors

To attract institutional investment, several ETF issuers have announced fee waivers for their Ethereum spot funds.

Franklin Templeton announced a 0.19% referral fee, but will waive it for the first $10 billion in assets for six months. Similarly, VanEck announced a 0.20% referral fee, which will be waived for the initial $1.5 billion until an unspecified date in 2025.

It should be noted that BlackRock and Fidelity have not yet disclosed their fees.

Meanwhile, the highly anticipated launch of Ethereum spot ETFs has faced delaysAnalysts had initially expected approval by July 2, but the U.S. Securities and Exchange Commission (SEC) asked issuers to submit revised documents by July 8.

In this regard, Nate Geraci, co-founder of the ETF Institute, predicted The funds will be launched during the week of July 15.

THE ETH price is up 1.2% over the past 24 hours, according to CoinGecko.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

9 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

9 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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