ETH ETF Expected to Attract Billions as Crypto Industry Awaits New Catalyst After Bitcoin ETF Launch

After the Bitcoin ETF, the crypto industry is now waiting for an ETH ETF. This process has been going on for months. Bloomberg Research analyst James Seifert

The crypto industry is now waiting for an Ethereum (ETH) ETF after the Bitcoin (BTC) ETF hit the market. This process has been ongoing for months. According to Bloomberg Research analyst James Seifert, nine ETH ETFs will hit the market next week. Despite the positive sentiment as Bitcoin does well, there are major hurdles to cross. This is also the case for some top altcoins, which have performed terribly in recent weeks.

Institutional interest and market inflows

The market is seeing renewed interest once again after a U.S. Bitcoin ETF recorded 10 consecutive days of net inflows with high trading volume. For instance, BlackRock saw over $340 million in the first hour of trading. According to Paul Brody, Ernst & Young global head of blockchain, Bitcoin is seen as digital gold that can hedge against inflation, while Ethereum is emerging as a leading tokenized asset and smart contract platform.

Ethereum spot ETF set to attract billions

Institutions are flocking to Bitcoin, and now, they want a piece of Ethereum. In anticipation of the approval and launch of a physical Ethereum ETF, set to begin trading next week, analysts expect a surge in Ether prices. According to Citibank, these ETFs could see up to $5.4 billion in net inflows in the first six months, which is around 30-35% of the inflows into Bitcoin ETFs.

Unlike Bitcoin, which is largely valued as a store of value, Ethereum is known for its utility, powering the crypto economy. Moreover, Ethereum 2.0's transition to a proof-of-stake mechanism is expected to improve scalability, security, and energy efficiency, boosting investor confidence further.

Top Altcoins and their performance

Other cryptocurrencies, like Chainlink, Solana, and Injective, have also shown promising performance.

ChainLink (LINK)

Chainlink recently launched a Digital Asset Sandbox, where financial institutions can explore Web3 assets, aiming to bridge the world of traditional finance and cryptocurrencies. Furthermore, LINK has risen 44% in 2024 amidst the downtrend, reaching highs of over $20 before falling back to below $15.

Solana (SOL)

Expectations of a spot Solana ETF approval are driving up the price of sol. VanEck and other asset managers have filed for these ETFs, which could bring more institutional investors into Solana. Solana's high transaction speeds and low fees make it an attractive blockchain for decentralized applications and DeFi projects. After a slight decline, SOL trades above $158 and the 100-hour simple moving average, showing a positive trend for intraday traders.

Injective (INJ)

Injective is seeing demand for a staking exchange-traded product (ETP), which will allow traditional financial investors to gain exposure to the INJ token and earn staking rewards. INJ has risen about 32% in the past week and only 1% in the past 24 hours. Injective (INJ) trades at $26.17. Price could rise to $380.

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