Will Spot Ethereum ETF Trigger a New Crypto Surge? Here’s What to Expect

As spot Ether ETFs near their launch, Binance CEO Richard Teng expects them to bring a steady and substantial influx of capital over time. While others predict significant immediate impacts, RT RICHARD TENG RT RICHARD TENG Richard Teng is known as the Chief Executive Officer of Binance with over 3 decades of experience in the Financial Services and regulatory experience. He served as the head of Regional Markets at Binance, He leads the team to secure strategic partnerships, foster an ecosystem of innovation to expand the cryptocurrency space within the respective regions.  Prior to this he was the regional head of Asia, Europe, and MENA. He also served as the Financial services regulatory authority at Abu Dhabi Global Market. Richard served various other roles gaining a lot of exposure to different experiences through these, such as Senior Vice President, Head of Regulation, etc. Personal Info: Organization: Binance,Location: SingaporeGraduation: Richard graduated from the University of Western Australia with a Master’s Degree in Applied Finance and holds a degree in Accountancy from the University of Nanyang Experience: Richard Teng is known as the Chief Executive Officer  at Binance He served as the head of Regional Markets at Binance Regional Head of Asia, Europe and MENA Also served as the Financial services regulatory authority at Abu Dhabi Global Market. He is an active Fintech Speaker as he travels globally to educate people about Finance  Participated in executive leadership program at the Wharton School   Chief Executive Officer believes the initial effects will not be exciting. 

Will Ether outpace Bitcoin in volatility? Could its price soar or dive? Explore expert opinions and discover how these developments could influence your crypto portfolio.

Teng’s Projections: Steady Growth Ahead!

Teng expects that while the initial inflows and performance of these ETFs might not be spectacular, there will be a consistent influx of capital driven by macroeconomic factors such as US monetary policy and election outcomes. He believes that institutional participation could eventually boost ETF liquidity, positioning ETH as an attractive long-term investment.

However, Teng also points out that the absence of a staking component in these ETFs, which could provide additional yield to investors, might dampen their appeal. SEC Commissioner Hester Peirce has suggested that adding a staking feature could be reconsidered in the future, potentially increasing the attractiveness of these ETFs.

Ether ETFs Are Coming – Are You Ready?

Katherine Dowling of Bitwise reports that spot Ether ETFs are nearing approval, with the SEC requesting final filings ahead of a potential launch on July 23. Some experts, like Tom Dunleavy from MV Global, predict $5 to $10 billion in inflows shortly after launch, which could drive ETH to new highs. Meanwhile, Bitwise CIO Matt Hougan forecasts $15 billion in Ether ETF inflows within the first 18 months.

Bloomberg analyst James Seyffart expects these ETFs to capture 20% to 25% of the revenue generated by Bitcoin funds in their first month.

Lessons from Bitcoin ETFs

Since their launch in January, Bitcoin ETFs have attracted nearly $15 billion from investors, initially causing BTC’s price to surge. However, this rally has since tapered off, with most ETF inflows coming from arbitrage strategies rather than outright bullish bets. This cautious sentiment may also affect Ether ETFs.

A Milestone for Ethereum and Beyond

With millions of dollars at stake, Teng views the launch of spot Ether ETFs as a pivotal moment for Ethereum and the broader digital asset market. He believes it will enhance the legitimacy and accessibility of crypto investments, drawing parallels to the January launch of spot Bitcoin ETFs.

According to Teng, Ether ETFs will likely attract a diverse range of investors by addressing concerns about legitimacy, compliance, and security.

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The market now depends on ETH ETF performance following bloodshed. Are you ready for volatility?