Zinger Key Points
- Flood Capital predicted a 77% chance the Ethereum ETFs would launch next week.
- Asset managers eye the lucrative crypto ETF space, with Blackrock's IBIT already raking in $45 million in fees in six months.
- Get Monthly Picks of Market's Fastest Movers
Spot Ethereum ETH/USD ETFs have kept crypto markets and traders on the edge, with bullish sentiment for the second-biggest crypto rising.
What Happened: Trader Flood Capital predicts a 77% chance that the Ethereum ETF will commence trading next week. He expects a "significant upside repricing" based on the assumption that Ethereum ETF flows will not disappoint and went “extremely long” on the asset.
The trader highlighted that the recent Ethereum low marked a near full retracement of the ETF announcement pump, indicating that people are extremely bearish due to ETHE outflow fears, critical views from crypto figures like Kang and poor market sentiment.
Flood Capital also presented several bullish arguments that he believes are being overlooked. He emphasized that asset managers view the crypto ETF space as a new frontier that could generate billions in management fees over the next decade. He cited Blackrock’s successful product launch with IBIT, which is already generating nearly $45 million in fees a year, just six months after its launch.
Also Read: Ethereum ETF Inflows Could Be Up To 50% Of Bitcoin ETF Inflows: Galaxy Research
Why It Matters: Flood Capital believes the Ethereum ETFs presents another massive opportunity for asset managers to launch a product that could generate hundreds of millions in fees and could be as big as the Bitcoin BTC/USD ETFs, given the base management fees and the future ability to clip a fee off of the staking yield.
He also highlighted a clip by Scott Melker and VanEck‘s Head of Digital Asset Research, Matthew Sigel, which discusses how a $100 billion asset manager like VanEck is considering the Ethereum ETF launch. According to Duncan, VanEck is betting on the ETH ETF to catalyze a reflexive rally in ETH.
The trader thinks companies like BlackRock and VanEck could start an Ethereum narrative themselves, whether it’s real-world assets, VanEck's new stablecoin or their "open app store" thesis. He believes that combining these narratives with good flows and Ethereum’s extremely reflexive characteristics could lead to a massive ETH rally.
What’s Next: The influence of BEthereum 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: Why Bitcoin, Ethereum ‘Bottom Is In’ And ‘New Highs Are Imminent,’ According To Veteran Trader
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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