According to an expert, the approval of spot ETH ETFs will address concerns about Ethereum and increase market demand. The expert suggested that if spot ETH ETFs capture 10-20% of Bitcoin ETF flows, Ether could retest its $4,800 peak.
Grayscale’s spot Bitcoin ETFs accumulated over $35 billion in assets under management within six months of trading. Wooding’s estimations align with a report from the Gemini crypto exchange, which stated that spot ETH funds could attract $5 billion in net inflows over six months.
Bitcoin is commonly viewed as digital gold and a store of value, while Ethereum functions as a smart contract-powered ecosystem for decentralized applications. The market heavily relies on Ether as a liquid asset and an economic vehicle.
However, ETFs hold assets and await higher prices, potentially resulting in large amounts of dormant Ether. While this may not be the best use case for Ether, Wooding believes that the overall impact may be positive for ETH proponents.
According to Wooding, if the SEC rejects Ethereum funds, it could damage the SEC’s credibility and competence. The denial might also lead to further regulatory discussions and result in better future proposals.
Additionally, Ether prices might decline if the SEC denies spot Ether ETFs. However, Wooding speculated that such an outcome is unlikely and any market downturn would be short-lived.
In Wooding’s opinion, the fundamental value and utility of Ethereum remain strong, and the market would likely stabilize as investors refocus on its technological developments and applications.
