A managing partner for MV Global by the name Tom Dunleavy, recently said he expects Ethereum ETFs to gather as much as $10 billion in inflows after their launch. Those inflows, says Dunleavy, will drive the price of ETH to new all-time highs, with prices touching such as soon as Q4 of this year. He added that Ethereum ETFs would first see about $1 billion in flows per month. This comes after the U.S. regulators are reportedly in the final review for eight spot Ether ETFs, with trading expected to commence any time soon.
Dunleavy contrasts this potential influx with the $15 billion Bitcoin ETFs have managed, insinuating the ETH price can be even more reactive since it is less available across exchanges.
Prospective issuers of an Ethereum ETF are waiting in anticipation for the U.S. Securities and Exchange Commission to either give them the green light to start on another wave of filings or allow them to start on final drafts. The issuers last submitted their S-1 forms on July 8, and from here it's up to the SEC.
The latest developments have seen market watchers theorizing that launch could be right around the corner; in fact, Bloomberg Senior ETF Analyst Eric Balchunas tweeted earlier this month that the wait could be over in July.
A never-ending review by the SEC and expectation of one final filing has left issuers hope that approval is near. Light comments from the SEC in previous rounds of feedback suggest that the process will shortly be coming to an end.
Crypto analyst "Bluntz" forecasts Ethereum to hit $8,000, even with a sell-off expected first. According to Bluntz, ETH has to reach $2,800 in order to complete a corrective pattern before it starts a significant upswing.
This "ABC" correction pattern could be the one indicating the end of a downtrend; it can lead to a rise to $6,000 before a final run upward to $8,000. Bluntz has drawn a roadmap where sideways trading and the forming of new lows might precede a recovery marked by high volatility.
The key to this bullish setup is anticipated to be the launch of spot Ethereum ETFs, although a short-term sell-off after the launch might possibly precede a period of intense buying pressure.
Kraken Head of Strategy Thomas Perfumo expressed optimism about the impact that spot Ethereum ETFs could have on the broader crypto market. He thinks these products will bring big capital flows, which can even push ETH toward all-time highs of $4,000 to 5,000.
He also compared the situation with that when Bitcoin hit all-time highs in March but at that time, coupled with substantial price increases, there was no increase in new investors.
Perfumo also spoke about political developments and, among other things, emphasized how important legislative clarity is for the crypto market.
He also observed that recent bipartisan support in Congress, though troubled at the executive level, did show signs of progress in the regulatory landscape. Key takeaways from Glassnode indicate that diverging Ethereum prices have been noted within the first year of a Bitcoin halving event.
Historically, the asset has had significant drawdowns and thereafter epic rallies in other cycles. In the current cycle, though, the drawdown has been lower at -42%. Since the FTX lows in November 2022, Ethereum's price is up 267%, which added $354 billion to its market capitalization. ETH supply in profit has not dropped below 90% since the very start of the year, indicative of later bull cycle tendencies of investor profit-taking.