Ethereum briefly crossed the USD 4,000 mark (again), but traders sold off and the coin was once again left hanging just below the resistance level. Nevertheless, inflows to spot ETFs have surged over the past two weeks, with net inflows to Ether funds exceeding USD 2 billion. Juan Leon, senior investment strategist at Bitwise, predicts that this is a harbinger of an Ethereum breakout in 2025. He believes that the Ethereum network has the best chance of gaining significant market share in the rapidly growing tokenization industry.
That is a long time ago.
Well, he's actually 12 months old.
Ethereum once again breached the coveted US$4,000 (AU$6.31,000) milestone, but retreated as investors turned cold.
Despite traders being hesitant to consolidate above resistance levels, Juan Leon, senior investment strategist at Bitwise, believes Ether will breakout in 2025.
catalyst? Tokenization.
Related: BTC surges to all-time high below $108,000, ETH hits year-to-date high
Spot Ether ETF soars despite strong resistance
Leung’s note to investors begins by highlighting the surge in Ethereum trading volume over the past 10 days. Most of the money went into Spot Ether ETFs, which saw inflows worth US$2 billion (A$3.16 billion) over the same period.
By the way, that's eight times the number the market experienced in the four months ending in December.
The coin’s price trend during this period has not been particularly attractive, with Ether well below its 2021 all-time high of US$4.8 million (A$7.6 million).
However, there is a clear push from institutional investors looking to gain at least some exposure to this project heading into 2025.
ETHUSD 1w chart
Tokenized funds could capture a multi-trillion dollar market: will Ethereum become a capitalizable network?
According to Leon, the reason why money is flowing back into Ethereum is tokenization.
The sector has grown significantly over the past few years, with giant asset managers like BlackRock entering the market with its tokenized treasury fund BUIDL.
Bitwise believes this is just the beginning.
[Bitwise] We believe tokenized funds will triple next year, with Ethereum being the driving force.
Juan Leon, Senior Investment Strategist, Bitwise
Leong claims that Ethereum positions itself as the most “heavily tested” smart contract platform in the industry and already owns 81% of the tokenization market share.
And if tokenization really takes off in 2025, as many believe it will, blockchain, and Leon says Ethereum, is poised to see a huge influx of capital.
It's difficult to overstate how large the RWA market is. Real-world assets have approximate values [US] 100 trillion dollars worldwide. It will take time for many of them to move to tokenized rails. However, if that happens, fees from assets linked to RWA will be [US] 100 billion dollars a year. This is more than 40 times the annual cumulative fee for Ethereum.
Juan Leon, Senior Investment Strategist, Bitwise
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