There has been much discussion and opinion about the extent to which Ethereum ETFs under the microscope will affect the price of ETH. Crypto analyst and trader Raman also joined the conversation and revealed how these funds provide Upside catalysts for Ethereum.
How Ethereum Spot ETFs Provide a Bullish Setup for ETH Price
Referring to Ethereum Spot ETFs, Raman claimed in an X (formerly Twitter) job that the second half of this year will be the “most obvious bullish configuration for the Ethereum Ecosystem “in recent history.” First, he said Ethereum ETFs would unlock new capital into the Ethereum ecosystem.
The analyst believes that this new money will greatly appreciate. ETH Priceespecially since Ethereum hasn’t seen such massive inflows in quite a while. He noted that the money that has flowed into the Ethereum ecosystem over the past two years was just a rotation of capital from traders who continued to move their money between multiple crypto assets.
Raman also belongs to the school which believes billions of dollars will flow into the Ethereum ecosystem via Ethereum Spot ETFs. The analyst hinted at how Spot Bitcoin ETFs saw over $17 billion in net inflows and claimed Ethereum’s round was next. Bitwise Chief Investment Officer (CIO) Matt Hougan previously predicted that Spot Ethereum ETFs will attract $15 billion over their eighteen months of trading.
Other headwinds that are about to become tailwinds
Raman also highlighted two other headwinds that will become tailwinds for Ethereum thanks to the Ethereum ETFs under the microscopeThe analyst said that the “regulatory witch hunt against ETH is winding down.” He claimed that Ethereum has been under investigation for fusionwhich he said made the crypto token “radioactive for institutions.”
However, Raman noted that the “era of regulatory purgatory” has ended with the approval of Ethereum Spot ETFs. Securities and Exchange Commission The SEC’s approval of these funds has all but confirmed that the crypto asset is now considered as a commoditynot a security. Raman added that this paved the way for new applications and innovation to flourish on Ethereum.
Finally, Raman mentioned that the macroeconomic landscape is about to favor riskier assets like Ethereum. He noted how these risk assets have been sidelined so far as capital that could have flowed into cryptocurrencies has been diverted to traditional assets. However, as Raman stated, this is about to change as the the largest capital markets People all over the world are finally embracing crypto.
He added that new institutional and retail capital will flow into Ethereum (and Bitcoin) since Spot ETFs are the “safest on-ramps” into the crypto space. With this in mind, Raman believes Ethereum is poised for “prime-time adoption.”
Featured image created with Dall.E, chart by Tradingview.com
