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GM. This is Milk Road, the crypto newsletter that's as exhilarating as a surprise upgrade to first class. Buckle up, because $ETH ETFs are taking off, and we're here to give you the first-class scoop!
Hereโs what we got for you today:
- โ๏ธ 5 $ETH ETF inflow predictions
- ๐ COTD: Weekly fund flows report
- ๐ฅ PRO โWhere are we in the cycle?โ indicators
- ๐๏ธ The Milk Road Show: Ethereum Price Predictions & 4 Reasons It's About to EXPLODE! w/ Lark Davis
- ๐ช Bitlayer Labs valued at $300M after Franklin Templeton investment
Prices as of 9:30AM ET. Click here for our Fear & Greed Index
5 $ETH ETF INFLOW PREDICTIONS ๐ฎ
The Spot $ETH ETFs are finally live and the Milk Man is more excited than a seagull at a beach picnic! ๐๏ธ
Behind this layer of excitement, everyoneโs probably wondering: How TF are these ETFs going to affect my $ETH bags?? ๐ฐ
To answer that, letโs dive into the $ETH inflow projections from some of the top institutions in crypto: Galaxy Digital, Bitwise, JP Morgan and more.
These predictions can be confusing, but the Milk Man is here to break it down like he does on the dance floor ๐บ
Hereโs the TL;DR: (All % comparisons are based on $BTC ETF flows in their first 5 months of trading)
- Bull Case: Inflows of $5B in 2024 (30% of $BTC ETFs)
- Base Case: Inflows of $3B in 2024 (20% of $BTC ETFs)
- Bear Case: Inflows of $1.5B in 2024 (10% of $BTC ETFs)
Keep reading for more details on each prediction (and how it could impact the price of $ETH ๐) โฌ๏ธ
1/ Bull case
Alex Thorn, head of research at Galaxy Digital, predicts that there will be an inflow of $5B by the end of 2024.
Bitwise has a similar EOY prediction but believes 2025 will be even bigger for the $ETH ETFs.
The bustling prediction is packed into a beautiful episode of The Milk Road Show with Matt Hougan (Bitwise CEO), listen as he unpacks more about these ETFs ๐ง
2 Key Reasons why Galaxy Digital and Bitwise are so bullish:
- Expect institutions to hold both $BTC and $ETH in order to diversify their crypto exposure
- Grayscale outflows are expected to be lowerthan they were for Bitcoin
2/ Base case
JP Morgan believes that the $ETH ETFs will snag $3B in 2024 (20% of the inflows that $BTC ETFs saw in their first 5 months of trading)
Other notable names like the โBloomberg Boysโ, Eric and James, share JP Morganโs perspective ๐ฌ
3/ Bear case
Andrew Kang, co-founder of Mechanism Capital and prominent figure on crypto twitter, leads the glass half empty argument
He predicts$1.5B of inflows in 2024 (10% of the inflows that $BTC ETFs saw in their first 5 months of trading ).
3 Key Reasons behind his prediction:
- Institutions prefer $BTC over $ETH
- The buzz around Spot $BTC ETFs was much larger than Spot $ETH ETFs
- $ETH ETFs are less attractive without staking
Impact on $ETH?
$ETHโs price will be more sensitive to ETF flows than $BTC, since 40% of its supply is locked in staking and smart contracts. ๐
What happens to $ETH in the next 5 month is really anyoneโs guess but one thing is certain: Institutional flow into $ETH will only benefit the token in the long-term. ๐ช Could this be the catalyst that sends $ETH's price to the moon? Spoiler: We think so. ๐
AND we tell you why on todayโs episode of The Milk Road Show! We break down:
- Why is $ETH called "Ultrasound Money"? ๐๐ฆ
- Why Layer-2 solutions are a game-changer for Ethereum and how they're fueling growth. ๐
- Lark Davis' personal $ETH price predictions and portfolio allocation strategies. ๐
Donโt miss out on the juicy details โ tune in! ๐ง๐
YouTube | Spotify | Apple Podcasts
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COTD: WEEKLY CRYPTO FUND FLOWS ๐
Get your HODL hats on, Roaders! $1.44B 2 weeks ago, and then last weekโs inflows of $1.35B were like running back to back marathons.
Thatโs the 7th largest inflow on record and a clear sign that the crypto fund train is still chugging along! ๐
Letโs dig into it ๐
Source: CoinShares via Bloomberg
Here are the flows:
Bitcoin ($BTC): The crypto king continues to reign supreme with a whopping $1.27B in inflows. After a quiet June, Bitcoin is shining bright.
Ethereum ($ETH): Ethereum saw inflows of $45M last week, overtaking Solana for second place in inflows year-to-date at $103M ($SOL at $71M).
The buzz around the spot-based ETF is giving Ethereum some serious momentum.
Regional rundown:
- The US: Leading the pack with $1.3B in inflows.
- Switzerland: Poured in $66M.
- Brazil: Experienced minor outflows of $5.2M.
- Hong Kong: Also saw minor outflows totaling $1.9M.
The hefty inflows into Bitcoin and Ethereum show that the global appetite for digital assets keeps churning!
Quick Hits:
- Litecoin ($LTC): Inflows of $2.2M last week.
- Blockchain Equities: Still struggling with $8.5M in outflows, despite ETFs outperforming world equity indices.
Investors are positioning themselves for the next big wave in crypto, which might just be spurred by institutions with the $ETH ETF approval.
PRO โWHERE ARE WE IN THE CYCLE?โ INDICATORS ๐ค
Crypto moves in cycles, and knowing where we are in the current cycle is crucial for capturing the best opportunities.
The goal is to spot the bull market peak before the inevitable bear market hits your bags hard.
Since timing the top perfectly is almost impossible, we use various indicators to give us a better shot at taking profits before it's too late.
Below are the 5 indicators we track, with a color-coded system to show how close they are to signalling the market peak:
๐ข Plenty of room to run ๐
๐ก Getting closer to the top signal, but havenโt yet reached the mark โ ๏ธ
๐ด Weโve hit the market top indicator ๐จ
Every Tuesday, we update these 5 indicators exclusively for PRO members.
Our advice? Don't wait for all of them to hit ๐ด. It's better to take profits as they get closer to that point.
Let's dive in and see if we're anywhere near the top of this bull market. ๐
