{"id":15298,"date":"2024-07-17T18:00:23","date_gmt":"2024-07-17T15:00:23","guid":{"rendered":"https:\/\/forklog.com\/en\/bitwise-predicts-ethereum-surge-beyond-5000-following-etf-launch\/"},"modified":"2024-07-17T18:00:23","modified_gmt":"2024-07-17T15:00:23","slug":"bitwise-predicts-ethereum-surge-beyond-5000-following-etf-launch","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitwise-predicts-ethereum-surge-beyond-5000-following-etf-launch\/","title":{"rendered":"Bitwise Predicts Ethereum Surge Beyond $5000 Following ETF Launch"},"content":{"rendered":"<p>The introduction of exchange-traded funds (ETFs) based on Ethereum&#8217;s spot price is expected to propel the cryptocurrency&#8217;s value to historic highs above $5000, according to a report by <a href=\"https:\/\/www.coindesk.com\/markets\/2024\/07\/17\/ether-spot-etf-inflows-will-push-eth-to-beyond-5k-bitwise\/\">CoinDesk<\/a>, citing Bitwise.<\/p>\n<p>Matt Hougan, the company&#8217;s Chief Investment Officer, noted that initial price movements might be volatile due to fund outflows from the Grayscale Ethereum Trust. The assets in this ETF-convertible structure amount to $11 billion.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Nevertheless, I am confident that by the end of the year, there will be new highs, and if the inflows are stronger than many market commentators expect, the price will be even higher,&#8221; Hougan wrote.<\/p>\n<\/blockquote>\n<p>Bitwise experts highlighted that Bitcoin&#8217;s price has increased by approximately 25% since the <a href=\"https:\/\/u1f987.com\/en\/news\/sec-approves-all-11-spot-bitcoin-etf-applications\">launch of spot ETFs<\/a> in January. Taking October 2023 prices as a starting point, when expectations of these products began influencing the market, the growth exceeds 110%.<\/p>\n<p>According to analysts, inflows into exchange-traded funds will have a greater impact on Ethereum compared to the first cryptocurrency due to three structural differences:<\/p>\n<ul class=\"wp-block-list\">\n<li>short-term zero inflation of ETH versus 17% for BTC (in January) creates increased demand in the absence of new supply;<\/li>\n<li>Ethereum validators do not need to sell coins to maintain operations, unlike Bitcoin miners;<\/li>\n<li>28% of circulating ETH is locked in staking and, therefore, absent from the market.<\/li>\n<\/ul>\n<p>Bitwise specialists expect spot ETH-ETFs to attract up to $15 billion in the first 18 months.<\/p>\n<p>Analysts at Steno Research offered a similar forecast regarding fund inflows, estimating that Ethereum&#8217;s price will reach &#8220;at least $6500.&#8221;<\/p>\n<p>Bernstein suggested reduced demand for Ethereum funds compared to similar Bitcoin products due to the lack of staking opportunities.<\/p>\n<h2 class=\"wp-block-heading\">What&#8217;s Happening with the Ethereum-ETF Launch?<\/h2>\n<p>In May, the U.S. Securities and Exchange Commission (SEC) <a href=\"https:\/\/u1f987.com\/en\/news\/sec-approves-spot-ethereum-etfs-key-developments\">approved<\/a> the 19b-4 forms of potential spot ETH-ETF issuers. Among the approved companies are VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK Invest\/21Shares, Invesco\/Galaxy, and Bitwise.<\/p>\n<p>For product listing, S-1 applications must be registered with the regulator, so potential issuers are actively continuing their dialogue with the SEC.<\/p>\n<p>Experts anticipated the launch of exchange-traded Ethereum funds in early July. However, during Senate hearings, SEC Chairman Gary Gensler cautiously predicted final product approval &#8220;sometime by the end of this summer.&#8221;<\/p>\n<p>Following another round of S-1 form adjustments by issuers in early July, Nate Geraci, President of The ETF Store, named the 15th as the date for a positive SEC decision. Bitwise&#8217;s Head of Compliance, Katherine Dowling, confirmed that the process was &#8220;in the final stretch.&#8221;<\/p>\n<p>However, on July 15, Bloomberg&#8217;s senior exchange analyst Eric Balchunas reported that spot ETH-ETF trading would commence on July 23, noting this would occur barring any &#8220;last-minute unforeseen issues.&#8221; Sources within the fund issuers confirmed his information.<\/p>\n<p>On July 17, James Seyffart noted that companies began submitting final application forms, including fee amounts, as his colleague Balchunas had predicted. 21Shares was the first, with fees set at 0.21%.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">First in the wave of <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\">#Ethereum<\/a> ETF filings that we are expecting today just came in from <a href=\"https:\/\/twitter.com\/21Shares?ref_src=twsrc%5Etfw\">@21Shares<\/a>. They&#8217;re matching their <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#bitcoin<\/a> ETF fee of 0.21% <a href=\"https:\/\/t.co\/moscBlxytz\">pic.twitter.com\/moscBlxytz<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1813577061942116737?ref_src=twsrc%5Etfw\">July 17, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Michael van de Poppe, analyst and founder of MN Trading, identified the launch of ETH-ETF as one of the catalysts for the asset&#8217;s leading price growth in the ongoing bull market cycle.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The introduction of exchange-traded funds (ETFs) based on Ethereum&#8217;s spot price is expected to propel the cryptocurrency&#8217;s value to historic highs above $5000, according to a report by CoinDesk, citing Bitwise. Matt Hougan, the company&#8217;s Chief Investment Officer, noted that initial price movements might be volatile due to fund outflows from the Grayscale Ethereum Trust. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[949,1146,569,46,1150],"class_list":["post-15298","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitwise","tag-cryptocurrency-market-forecasts","tag-etf","tag-ethereum","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=15298"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15298\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/15297"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}