There has been much debate and opinion about how much the Spot Ethereum ETFs will affect the ETH price. Crypto analyst and trader Raman has also joined the conversation and revealed how these funds upward catalysts for Ethereum.
How the Spot Ethereum ETFs Provide a Bullish Setup for the ETH Price
While referring to the Spot Ethereum ETFs, Raman claimed in an X (formerly Twitter) after that the second half of this year is the “most likely bullish situation for the Ethereum Ecosystem in recent history.” First, he stated that the Ethereum ETFs will free up new capital in the Ethereum ecosystem.
The analyst believes that this new money will increase dramatically in value. ETH Priceespecially considering that Ethereum hasn’t seen massive inflows in a while. He noted that the money that has been poured into the Ethereum ecosystem over the past two years is simply the rotation of capital from traders who have continued to spread their money between different crypto assets.
Raman also belongs to the school that believes billions of dollars will flow into the Ethereum ecosystem via the Spot Ethereum ETFs. The analyst hinted at how the Spot Bitcoin ETFs have seen over $17 billion in net inflows and claimed that Ethereum is next. Bitwise’s Chief Investment Officer (CIO), Matt Hougan previously predicted that the Spot Ethereum ETFs will raise $15 billion in their 18 months of trading.
Other headwinds that will become tailwinds
Raman also highlighted two other headwinds that are emerging thanks to the Spot Ethereum ETFsThe analyst stated that the “regulatory witch hunt against ETH is coming to an end.” He claimed that Ethereum has been in the doldrums since the mergersomething he believes has made the crypto token “radioactive for institutions.”
However, Raman noted that the “era of regulatory purgatory” has ended with the approval of the Spot Ethereum ETFs. The U.S. Securities and Exchange Commission (SEC) (SEC) approval of these funds has all but confirmed that the crypto asset is now considered a commodityno security. Raman added that this paved the way for new apps and innovation on Ethereum to flourish.
Finally, Raman mentioned that the macro landscape is about to favor riskier assets like Ethereum. He noted how these risky assets had been sidelined until now, as capital that could have flowed into crypto was diverted to traditional assets. But as Raman said, that is about to change, as the largest capital markets The world is finally embracing crypto.
He added that new institutional and retail capital will flow into Ethereum (and Bitcoin) as Spot ETFs are the “safest entry points” into the crypto space. In line with this, Raman believes Ethereum is ready for “prime-time adoption.”
Main image created with Dall.E, chart from Tradingview.com