Ethereum
Cryptocurrency Trader Says He’s ‘Extremely Long’ Ethereum, Undeterred by Crash Below $3,400
Cryptocurrency Trader Duncan explained why he is “extremely long” on Ethereum (ETH) despite the crypto token’s position recent drop to around $3,400He stressed the Spot ETF Ethereumwhich he believes could trigger a significant rise in ETH.
A “significant upward revaluation” could be on the horizon for Ethereum
Duncan mentioned in an X (formerly Twitter) job that he believes the market is much too bearish for now and that there could be a “significant upward revaluation” for Ethereum if the Spot Ethereum ETF Entries are “anything but horrible.” He further explained why he believes Ethereum Spot ETFs will be hugely successful, contrary to what some might think.
He first stressed that asset managers view the crypto ETF space as a “new frontier” that could generate them billions in management fees over the next ten years. He highlighted how BlackRock had the most successful product launch in its history with its Bitcoin Spot ETFwhich he says is already generating $45 million in fees per year, just six months after its launch.
Based on this, Duncan said that Spot Ethereum ETFs provide these asset managers with another “massive 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 possibility of reducing staking yield fees.”
Duncan also hinted at an interview Scott Melker (aka Wolf Of All Streets) had with VanEck’s head of digital asset research, Matthew Sigelto highlight what these asset managers think 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 said could make them more money.
Ethereum Spot ETF Issuers Could Provide a Narrative for ETH
Duncan attempted to counter the argument made by crypto figures like Andrew Kang, who argued that Ethereum lacks a narrative and that Spot Ethereum ETFs may not be successful because of it. Duncan said asset managers like BlackRock and VanEck can “literally start the narratives themselves.”
He added that the story could be about BlackRock Real World Assets (RWA) in chain, VanEck’s new stablecoinor the “open app store” thesis of asset managers. Dunan said the market could see a “massive rally in ETH” when these narratives are mixed with “good flows and the extremely reflexive characteristics of ETH.”
The crypto trader admitted that this could take time, but felt it was naive to think that these asset managers would not deploy significant resources to attract flows to 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 claimed that Wall Street had put a lot of effort into ensuring that Ethereum Spot ETFs were approved and now they would make just as much money from it while pumping ETH.
Featured image created with Dall.E, chart from Tradingview.com