Ethereum ETF: Billion Dollar Fund Triggers ETH Price Rise?

Bittime - The renowned crypto exchange, Gemini, has just released a research report predicting a bright future for Ethereum (ETH) with the presence of Spot Ethereum ETF which will soon be launched in the United States. This report shocked the crypto industry and sparked speculation regarding the potential for a significant increase in ETH prices.

Billions of Dollars Flood Flooding Ethereum ETF

Gemini predicts a surge in investor interest in Ethereum ETFs. Their report estimates net inflow of up to $5 billion in the first six months of trading. This figure is considered fantastic and has the potential to push the value of Ethereum in the US-based Spot ETF up to $13-$15 billion at the end of the year.

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This significant capital increase was triggered by several factors. First, the launch of the Spot Ethereum ETF will make it easier for investors to buy and sell ETH without having to go through complex crypto exchanges. Second, market sentiment towards Ethereum is currently quite positive, driven by the rapid development of Ethereum blockchain technology and its increasingly widespread adoption by various industries.

Read also: What is ETH Staking in the Crypto World?

Advantages of Ethereum Compared to Bitcoin

The Gemini report also highlights the potential undervaluation of Ethereum compared to Bitcoin (BTC). Currently, the ETH/BTC ratio is at a low level compared to previous records. This shows that Ethereum has the potential to appreciate in value significantly in the near future.

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Gemini estimates that the flow of funds into the Ethereum ETF could significantly increase Ethereum's position in the crypto market. "There is a very interesting risk-reward scenario for Ethereum in the coming months," Gemini said in its report.

Fundamental Factors Supporting Ethereum Price Increase

Gemini's optimism about Ethereum is based on several strong fundamental factors. First, Ethereum's stablecoin ecosystem is growing rapidly, with stablecoins such as Tether (USDT) and USD Coin (USDC) becoming increasingly popular among investors and traders. This shows growing confidence in Ethereum's stability and usability.

Second, Ethereum's on-chain activity shows a consistent positive trend. The number of daily transactions on the Ethereum network continues to increase, indicating that more and more people are using the Ethereum blockchain for various applications, such as DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens).

Prediction of Ethereum Price Increase of Up to 55%

Gemini predicts that if the ETH/BTC ratio returns to its three-year median, ETH prices can up almost 20%. A more optimistic scenario, namely if the ratio returns to its peak, is predicted to occur ETH price increase up to 55%. This significant price increase will make Ethereum one of the best performing crypto assets in 2024.

Low Net Fund Flow to Ethereum ETF Sparks Disappointment

Although optimistic, Gemini also provides a warning. They predict that if net cash flows into the Ethereum ETF are below $3 billion, it would be a disappointment considering Bitcoin managed to raise $15 billion in the first six months.

On the other hand, if net cash flows surpass $5 billion, that would be a strong sign. And if it reaches a figure approaching $7.5 billion, it will be a big surprise for the crypto industry.

Projections in Line with Steno Research regarding Ethereum

Gemini's projections are in line with last week's report from Steno Research, which predicted Ethereum could reach $6.500 at the end of the year due to strong ETF fund flows and other positive factors.

How To Buy Crypto With Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.