Since the Bitcoin spot ETF was listed in the United States, a total of $31 billion has flowed in, while ETH/BTC has fallen by nearly 25% during this period. Today, Ethereum has created a level playing field with its own ETF. Joseph Ayoub, who was previously responsible for encryption research at Citi, believes that ETH is seriously undervalued and should now "buy the news"!
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ToggleThe Development Trajectory of Bitcoin Spot ETFs
After leaving Citigroup, Joseph Ayoub founded Rug AI, focusing on the development of AI and cryptocurrency.
He pointed out that BTC previously rose by 30% due to approval rumors, and further rose by 40% before official trading on 1/11. Bitcoin spot ETF inflows exceeded US$31 billion in 2 months, and BTC rose by more than 90%. From bottom to high, Bitcoin gained a total of 170%.
This is the first credible sign of institutional adoption. Capital inflows came from 500 holders of hedge funds, advisory firms, asset management companies, and others.
How is ETH different from BTC?
If the Ethereum ETF can have even a fraction of the traffic of the Bitcoin ETF, it will cause the price of ETH to rise significantly.
Ayoub refutes ETH skeptics’ arguments
How is ETH different from BTC? ETH skeptics will argue: BTC is the king of crypto assets and ETH cannot compete with it. The argument for selling ETH is:
- It’s hard to understand ( elderly people don’t understand “Ethereum”, does the ETH ETF lack traditional market selling points? )
- Grayscale ETHE shows capital outflows
- Institutions don’t know what ETH is
Ayoub refutes these views and believes that ETH is more attractive than BTC!
- ETH is decentralized computing
- ETHE outflow is similar to GBTC outflow
- Institutions prefer Ethereum
Larry Fink and many other institutional celebrities are optimistic about ETH
He also cited the remarks of many celebrities mentioning Ethereum:
Ken Griffin (CEO of Citadel): ETH will replace Bitcoin
- Carl Icahn (American business tycoon): ETH is a storage of value and payment system
Stanley Druckenmiller (American billionaire and former hedge fund manager): ETH may eventually surpass BTC
Jamie Dimon (CEO of JPMorgan Chase): Use cases for ETH (he has mentioned many times that he hates BTC and doesn’t know what the use of Bitcoin is)
Larry Fink (BlackRock CEO): ETH is about tokenization
( BlackRock CEO Larry Fink is optimistic about Ethereum ETF: Towards a tokenized future )
ETH may be more popular than BTC
In addition, Ayoub proposed reasons why ETH may be more popular than BTC:
- ETH has a deflationary supply and is scarcer than BTC
- ETH has native yields and Tradfi loves yields
- ETH requires only 0.01% of energy to operate and meets ESG requirements
- ETH has utility and embedded applications that create value
Issuers will push for ETFs, ETH price remains undervalued
Additionally, major issuers such as BlackRock and Fidelity generated record revenue from Bitcoin spot ETFs. BlackRock's IBIT has $16.3 billion in BTC assets under management and charges 0.3%, which will bring it $48.9 million in annual revenue. This represents 1% of their revenue and 3.2% of their net income.
Ayoub believes that issuers will work hard to allow Ethereum ETFs to flourish.
And assuming that the demand for ETH (proportional to its market capitalization) is roughly the same as that of BTC, one can expect the price of ETH to rise significantly. And the Ethereum ETF has not yet started trading, which also provides room for speculation.
Ayoub believes that with the support of capital inflows, the ETH/BTC ratio may also return to above 0.06, or even to 0.08.
(This article is a personal opinion, not investment advice, please DYOR)
