Crypto trader Duncan recently shared his bullish outlook on Ethereum (ETH), despite the recent drop in price to around $3,400. He highlighted the potential impact of Spot Ethereum ETFs in sparking a significant rally for ETH. Duncan believes that the market is overly bearish at the moment and that there could be a “significant upside repricing” for Ethereum if the ETF inflows are positive.
Duncan pointed out that asset managers see the crypto ETF space as a lucrative opportunity to generate billions in management fees over the next decade. He referenced BlackRock’s success with its Spot Bitcoin ETF, which has been generating $45 million in fees annually, just six months after its launch. He believes that the Spot Ethereum ETFs offer asset managers a similar opportunity to capitalize on ETH’s potential, which could result in significant fee generation.
The trader also mentioned an interview conducted by Scott Melker with VanEck’s Head of Digital Asset Research, Matthew Sigel, which highlighted how asset managers like VanEck are betting on the Spot Ethereum ETFs to trigger a “reflexive rally” in ETH. This optimism from industry insiders suggests a positive outlook for Ethereum and potential price appreciation if the ETFs gain traction.
In response to concerns raised by some crypto figures about Ethereum lacking a narrative, Duncan argued that asset managers like BlackRock and VanEck could create narratives themselves to drive interest in the Spot Ethereum ETFs. He suggested that narratives around real-world assets on-chain or new stablecoins could contribute to a potential rally in ETH when combined with positive market flows and Ethereum’s reflexive characteristics.
While acknowledging that building these narratives may take time, Duncan emphasized that it would be naive to assume that asset managers would not allocate significant resources to attract inflows to their Spot Ethereum ETFs. This sentiment aligns with views shared by crypto analyst Tyler Durden, who described Ethereum reaching $10,000 as the “most asymmetric bet” in the crypto market. Durden highlighted the efforts made by Wall Street to secure approval for the Spot Ethereum ETFs and their potential to drive price increases for ETH.
