Crypto trader Duncan has explained why he’s “extremely long” on Ethereum (ETH) despite the crypto token’s recent drop to around $3,400. He emphasized the Spot Ethereum ETFs, which he believes could spark a big rally for ETH.
A ‘Significant Upside Repricing’ Could Be On The Horizon ForTHEEthereum
Duncan mentioned in an X (formerly Twitter) post that he believes that the market is way too bearish in the intervening time and that there could possibly be a “significant upside repricing” for Ethereum if the Spot Ethereum ETF inflows are “anything but horrible.” He further explained why he thinks the Spot Ethereum ETFs will likely be an enormous success, contrary to what some might think.
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First, he noted that asset managers view the crypto ETF space as a “latest frontier” that would generate billions in management fees for them over the following ten years. He highlighted how BlackRock has had its most successful product launch ever with its Spot Bitcoin ETF, which he claims is already generating $45 million in fees yearly, just six months after its launch.
Based on this, Duncan stated that the Spot Ethereum ETFs provide these asset managers one other “massive opportunity” to launch a product that would bring them similar success to the Spot Bitcoin ETFs, generating a whole bunch of tens of millions in fees. Duncan remarked that the Spot Ethereum ETFs are “almost as big because the Bitcoin ETF given the bottom management fees and the long run ability to clip a fee off the staking yield.”
Duncan further alluded to an interview Scott Melker (aka Wolf Of All Streets) had with VanEck’s Head of Digital Asset Research, Matthew Sigel, to emphasise how these asset managers feel in regards to the Spot Ethereum ETFs. From what was said through the interview, Duncan noted how VanEck is betting on the Spot Ethereum ETFs to spark a “reflexive rally” in ETH, which Sigel claimed could make them more cash.
Spot Ethereum ETF Issuers Could Provide A Narrative For ETH
Duncan tried to counter the argument made by crypto figures like Andrew Kang, who argued that Ethereum had no narrative and that the Spot Ethereum ETFs may not succeed due to that. Duncan stated that asset managers like BlackRock and VanEck can “literally start the narratives themselves.”
He added that this narrative could possibly be about BlackRock’s Real World Assets (RWA) on-chain, VanEck’s latest stablecoin, or the asset managers’ “open app store” thesis. Dunan said the market could witness a “massive ETH rally” when these narratives are mixed with some “good flows and ETH’s extremely reflexive characteristics.”
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The crypto trader admitted that this might take time but opined that it’s naive to think that these asset managers won’t deploy significant resources to draw inflows to their Spot Ethereum ETFs.
Crypto analyst and trader Tyler Durden shared the same sentiment when he mentioned that Ethereum reaching $10,000 was the “most asymmetric bet” in crypto today. He claimed that Wall Street had put a lot effort into ensuring that the Spot Ethereum ETFs were approved, and now, they may make as much money from it while pumping ETH.
ETH price above $3,400 | Source: ETHUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com