Crypto trader Duncan has defined why he’s “extremely long” on Ethereum (ETH) regardless of the crypto token’s recent drop to around $3,400. He emphasised the Spot Ethereum ETFs, which he believes might spark a big rally for ETH.
A ‘Significant Upside Repricing’ Could Be On The Horizon ForTHEEthereum
Duncan talked about in an X (previously Twitter) post that he believes that the market is way too bearish in the intervening time and that there might be a “significant upside repricing” for Ethereum if the Spot Ethereum ETF inflows are “anything but horrible.” He additional defined why he thinks the Spot Ethereum ETFs will probably be an enormous success, opposite to what some would possibly suppose.
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First, he famous that asset managers view the crypto ETF area as a “new frontier” that would generate billions in administration charges for them over the subsequent ten years. He highlighted how BlackRock has had its most profitable product launch ever with its Spot Bitcoin ETF, which he claims is already producing $45 million in charges yearly, simply six months after its launch.
Based on this, Duncan said that the Spot Ethereum ETFs present these asset managers one other “massive opportunity” to launch a product that would carry them comparable success to the Spot Bitcoin ETFs, producing a whole bunch of thousands and thousands in charges. Duncan remarked that the Spot Ethereum ETFs are “almost as big as the Bitcoin ETF given the base management fees and the future ability to clip a fee off the staking yield.”
Duncan additional alluded to an interview Scott Melker (aka Wolf Of All Streets) had with VanEck’s Head of Digital Asset Research, Matthew Sigel, to emphasise how these asset managers really feel in regards to the Spot Ethereum ETFs. From what was stated throughout the interview, Duncan famous how VanEck is betting on the Spot Ethereum ETFs to spark a “reflexive rally” in ETH, which Sigel claimed might make them more cash.
Spot Ethereum ETF Issuers Could Provide A Narrative For ETH
Duncan tried to counter the argument made by crypto figures like Andrew Kang, who argued that Ethereum had no narrative and that the Spot Ethereum ETFs may not succeed due to that. Duncan said that asset managers like BlackRock and VanEck can “literally start the narratives themselves.”
He added that this narrative might be about BlackRock’s Real World Assets (RWA) on-chain, VanEck’s new stablecoin, or the asset managers’ “open app store” thesis. Dunan stated the market might witness a “massive ETH rally” when these narratives are blended with some “good flows and ETH’s extremely reflexive characteristics.”
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The crypto dealer admitted that this might take time however opined that it’s naive to suppose that these asset managers gained’t deploy vital sources to draw inflows to their Spot Ethereum ETFs.
Crypto analyst and dealer Tyler Durden shared an identical sentiment when he mentioned that Ethereum reaching $10,000 was the “most asymmetric bet” in crypto right this moment. He claimed that Wall Street had put a lot effort into guaranteeing that the Spot Ethereum ETFs have been permitted, and now, they are going to make as a lot cash from it whereas pumping ETH.
Featured picture created with Dall.E, chart from Tradingview.com
