Duncan Crypto Trader explained why he is “extremely long” Ethereum (ETH) despite the crypto token recent drop to around $3,400. He emphasized the Ethereum ETFs in Spotlightwhich he believes could trigger a significant recovery for ETH.
A ‘Significant Bullish Rerating’ Could Be on the Horizon for THEEthereum
Duncan mentioned in a publish that he believes the market is very bearish at the moment and that there could be a “significant positive repricing” for Ethereum if the Identify Ethereum ETF Inflows they are “anything but horrible”. He further explained why he thinks Spot Ethereum ETFs will be a huge success, contrary to what some may think.
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First, he noted that asset managers see the crypto ETF space as a “new frontier” that could generate billions in management fees for them over the next ten years. He highlighted how BlackRock had its most successful product launch with its Spot Bitcoin ETFwhich he claims already generates $45 million in fees annually, just six months after its launch.
Based on this, Duncan stated that spot Ethereum ETFs provide these asset managers with another “great opportunity” to launch a product that could bring them similar success to spot Bitcoin ETFs, generating hundreds of millions in fees. Duncan noted that spot Ethereum ETFs are “almost as large as the Bitcoin ETF, given the base management fees and the future ability to reduce a rate of return on staking.”
Duncan also alluded to an interview Scott Melker (aka Wolf Of All Streets) had with VanEck’s head of digital asset research, Matthew Sigel, to emphasize how these asset managers feel about Spot Ethereum ETFs. From what was said during the interview, Duncan noted how VanEck is betting on Spot Ethereum ETFs to trigger a “reflexive rally” in ETH, which Sigel claimed could make them more money.
Spot Ethereum ETF Issuers Could Provide a Narrative for ETH
Duncan attempted to counter the argument put forward by cryptographic figures such as Andre Kangwho argued that Ethereum had no narrative and that spot Ethereum ETFs might not succeed because of it. Duncan claimed that asset managers like BlackRock and VanEck could “literally start the narratives themselves.”
He added that this narrative could be about BlackRock Real World Assets (RWA) in jail, VanEck’s new stablecoinor the asset managers’ “open app store” thesis. Dunan said the market could see a “huge ETH rally” when these narratives are mixed with some “good flows and extremely ETH-reflective characteristics.”
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The crypto trader admitted that this could take time, but opined that it is naive to think that these asset managers will not deploy significant resources to attract inflows into their Spot Ethereum ETFs.
Crypto Analyst and Trader Tyler Durden shared a similar sentiment when he mentioned that Ethereum hitting $10,000 was the “most asymmetric bet” in crypto today. He stated that Wall Street put a lot of effort into ensuring that Spot Ethereum ETFs were approved and now they will make so much money from it while pumping ETH.
Featured image created with Dall.E, chart from Tradingview.com