Here is Why Ethereum ETF Could be a Big Deal for Crypto

Thomas Perfumo, Kraken's Head of Strategy, recently emphasized the significant impact of the upcoming Ethereum ETF on the crypto market in an interview with Bloomberg.

According to Perfumo, the Ethereum ETF is a major event that is expected to attract substantial attention and capital inflows. He highlighted that this launch could serve as a crucial catalyst for the entire crypto market, potentially lifting all assets.

Perfumo mentioned that the market sentiment is closely watching the Ethereum ETF, with expectations of net inflows ranging from $750 million to $1 billion per month.

Such inflows could provide robust support for the industry, and if these estimates are exceeded, Ethereum could test new all-time highs around the $4,000 mark. Perfumo pointed out that during Bitcoin’s previous peak in March, the market didn’t experience extreme volatility or a surge in new signups, indicating that there is still significant potential for growth.

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In addition to the Ethereum ETF, Kraken’s Head of Strategy discussed other key factors that could influence the market. He noted that the broader macroeconomic environment, including interest rate cuts by Canada and Europe, raises questions about when and how the US Federal Reserve will act. He also mentioned the potential impact of the upcoming US election on crypto legislation and policy-making.

Perfumo acknowledged the progress made in the US Congress with the passing of FIT 21 and SAB 121, which signal emerging bipartisan support for crypto. He stressed the importance of continued legislative clarity and support for the industry’s growth.

Overall, Perfumo’s insights underscore the pivotal role that the Ethereum ETF could play in driving market momentum and attracting new capital, positioning it as a key event to watch in the crypto space.

Alexander Stefanov