Crypto Trader Says He’s ‘Extremely Long’ On Ethereum, Undeterred By Crash Below $3,400
June 28 2024 - 6:00PM
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Crypto trader Duncan has explained why he is “extremely long” on
Ethereum (ETH) despite the crypto token’s recent drop to around
$3,400. He emphasized the Spot Ethereum ETFs, which he believes
could spark a significant rally for ETH. A ‘Significant Upside
Repricing’ Could Be On The Horizon ForTHEEthereum Duncan mentioned
in an X (formerly Twitter) post that he believes that the market is
way too bearish at the moment and that there could be a
“significant upside repricing” for Ethereum if the Spot Ethereum
ETF inflows are “anything but horrible.” He further explained why
he thinks the Spot Ethereum ETFs will be a huge success, contrary
to what some might think. Related Reading: Telegram-Based
Notcoin Burns 210 Million Tokens Amid Positive Recovery First, he
noted that asset managers view 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 has had its
most successful product launch ever with its Spot Bitcoin ETF,
which he claims is already generating $45 million in fees yearly,
just six months after its launch. Based on this, Duncan
stated that the Spot Ethereum ETFs provide these asset managers
another “massive opportunity” to launch a product that could bring
them similar success to the Spot Bitcoin ETFs, generating hundreds
of millions in fees. 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 further 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 the
Spot Ethereum ETFs. From what was said during the interview, Duncan
noted how VanEck is betting on the Spot Ethereum ETFs to spark a
“reflexive rally” in ETH, which Sigel claimed could make them more
money. 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 might not succeed because of that.
Duncan stated that asset managers like BlackRock and VanEck can
“literally start the narratives themselves.” He added that this
narrative could be about BlackRock’s Real World Assets (RWA)
on-chain, VanEck’s new stablecoin, or the asset managers’ “open app
store” thesis. Dunan said the market could witness a “massive ETH
rally” when these narratives are mixed with some “good flows and
ETH’s extremely reflexive characteristics.” Related Reading: Why Is
The Bitcoin Price Down Today? The crypto trader admitted that this
could take time but opined that it is naive to think that these
asset managers won’t deploy significant resources to attract
inflows to their Spot Ethereum ETFs. Crypto analyst and
trader Tyler Durden shared a similar sentiment when he mentioned
that Ethereum reaching $10,000 was the “most asymmetric bet” in
crypto today. He claimed that Wall Street had put so much effort
into ensuring that the Spot Ethereum ETFs were approved, and now,
they will make as much money from it while pumping ETH.
Featured image created with Dall.E, chart from Tradingview.com
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