Zinger Key Points
- The podcast throws light on Ethereum’s low exchange supply, alongside the Ether ETF estimated to attract $4 billion in inflows.
- Coinbase's head of research thinks that the Ethereum ETF approval timeline got accelerated thanks to political influence.
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Scott Melker in his recent "The Wolf of All Streets" podcast discussed the upcoming Spot Ethereum ETH/USD ETF and its potential ramifications with David Young, Head of Institutional Research at Coinbase.
What Happened: Melker highlighted that Ethereum’s supply on exchanges is currently at historical lows. Coupled with the upcoming launch of the Ethereum ETFs, projected to attract up to $4 billion in inflows within six months, he pondered the resulting market dynamics.
David Young shared insights on the unexpected approval of the Ethereum ETF, contrasting it with the Bitcoin ETF approval process. Young acknowledged that "the political wind shifted so fast," which accelerated the approval timeline.
He noted that, unlike Bitcoin's spot ETF rollout, Ethereum didn't have extensive pre-marketing campaigns, leaving many investment professionals unaware of its impending launch.
Melker debated whether Ethereum's unfamiliarity with many investors compared to Bitcoin might be a challenge but agreed that institutional inflows could still be substantial.
Why It Matters: With Ethereum’s supply on exchanges at historically low levels, significant inflows from the ETF could lead to a supply shock, potentially driving up prices. The situation mirrors the Bitcoin ETF launch, which saw higher-than-expected demand and inflows.
The approval of the Ethereum ETF marks a pivotal moment for the crypto market. As institutions begin to take notice and possibly increase their Ethereum holdings, the dynamics of supply and demand will play a critical role in shaping price movements.
What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: How Ethereum ETF Inflows Will Impact Bitcoin And Cryptocurrency Prices
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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