Cryptocurrency Trader Duncan has explained why he has an “extremely long” position on ethereum (eth) despite the crypto token recent drop to around $3,400He stressed the ethereum-etf-expert-potential-launch/” rel=”nofollow”>ethereum Spot ETFwhich he believes could spark a significant rally for eth.
A 'significant price shift to the upside' could be on the horizon for THEEEthereum
Duncan mentioned in an x (formerly twitter) x.com/FloodCapital/status/1806126316678271014″ rel=”nofollow”>mail who believes the market is bitcoin–ethereum-put-call-ratio-retreating-in-june/” rel=”nofollow”>too bearish at the moment and that there could be a “significant upside revaluation” for ethereum if the ethereum-etf-gary-gensler/” rel=”nofollow”>ethereum Spot ETF Inflows are “anything but horrible.” He further explained why he believes ethereum Spot ETFs will be a huge success, contrary to what some might think.
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First of all, he pointed out that asset managers sees the cryptocurrency ETF space as a “new frontier” that could earn them billions in management fees over the next ten years. He highlighted how BlackRock has had its most successful product launch to date with its bitcoin-tidal-wave-blackrock-etf-leads-inflows/” rel=”nofollow”>bitcoin Spot ETFwhich according to him is already generating $45 million in commissions a year, just six months after its launch.
Based on this, Duncan stated that Spot ethereum ETFs provide these asset managers another “huge opportunity” to launch a product that could bring them similar success to Spot bitcoin ETFs, generating hundreds of millions in fees. Duncan commented that Spot ethereum ETFs are “almost as large as the bitcoin ETF given the base management fees and the future ability to deduct a fee from staking performance.”
Duncan also referred to an interview crypto-when-dogecoin-does-this/” rel=”nofollow”>Scott Melker (aka Wolf Of All Streets) had with VanEck's Head of Digital Asset Research, Matthew Sigelto emphasize how these asset managers feel about ethereum Spot ETFs. From what was said during the interview, Duncan pointed out how VanEck is betting on ethereum Spot ETFs to trigger a “reflexive rally” in eth, which Sigel says could make them more money.
ethereum ETF Spot Issuers Could Provide Narrative for eth
Duncan attempted to counter the argument of cryptographic figures such as Andrew Kangwho argued that ethereum had no narrative and that spot ethereum ETFs might not succeed because of that. Duncan claimed that asset managers like BlackRock and VanEck can “literally start the narratives themselves.”
He added that this narrative could be about BlackRock Real World Assets (RWA) in chain, bitcoin-etf-issuer-vaneck-dives-stablecoin-market/” rel=”nofollow”>VanEck's new stablecoinor the “open app store” thesis of asset managers. Dunan said the market could see a “massive eth rally” when these narratives mix with some “good flows and the extremely thoughtful features of eth.”
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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 ethereum Spot ETFs.
Cryptocurrency analyst and trader bitcoin-could-retrace-to-9000-if-it-breaks-below-this-one-key-level/” rel=”nofollow”>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 will make the most money on them while pumping eth.
Featured image created with Dall.E, chart from Tradingview.com
