Ethereum ETFs Dey Pass Bitcoin ETFs, Dey Push ETH Price Rally
Since di dem launch Ethereum ETFs for January 2024, dem don dey perform pass Bitcoin ETFs steady steady, dey give average NAV premium of 2.1% against 0.8%. Analysts talk say Ethereum staking yield wey be about 4% APY, lower management fees (0.29% vs. 0.35%) and tight bid-ask spread na di main reasons. Money dey flow enter Ethereum ETFs quick quick, wit spot ETF buys and company treasury acquisition reach roughly 2.83 million ETH—32 times new net issuance. Dis increase ginger 150% bounce back from April low, plus 50% rise for last month. ETH ETF assets still dey under 12% of Bitcoin ETF volume even if market cap ratio na 19%, Bitwise dey predict $20 billion for ETF and asset manager buys during next year, about 5.33 million ETH compare to 800,000 ETH issuance. Dis steady supply and demand imbalance go make price of ETH dey rise, giving traders chance for both capital gain and passive income.
Bullish
Di unified news dey highlight say di inflow wey dey enter Ethereum ETFs still dey steady and dey grow. Dem dey beat Bitcoin ETFs for premium, fee and yield levels. Because spot and corporate sats dey buy more pass wetin dem dey issue new, e cause one supply and demand imbalance. This imbalance don make ETH price bounce back well and we expect say e go continue as ETF asset go grow from less than 12% of BTC ETF volume go match Ethereum 19% market cap ratio. Dis one go make price dey go up short term and set better condition for ETH price to climb for longer term. Plus staking yield and low fee still dey attract money.