Crypto analyst Lark Davis on BlackRock’s IShares Ethereum He touched on a potential boom for ETH with the registration of his trust. Stating that he is confident in his prediction, Davis also underlined that he would not make such an application if Blackrock did not have faith in the Bitcoin spot ETF.
The analyst somewhat sarcastically noted that beyond Ethereum, BlackRock could explore ETFs for other cryptocurrencies such as Chainlink, Solana, and even Dogecoin. While BlackRock isn’t the first company to file for a spot in the ETH ETF, joining others like Invesco and Hashdex, Davis sees it as a sign of institutional interest aligning for a significant influx of institutional money.
Highlighting potential figures Lark Davis, also discussed current Ethereum holdings on exchanges. These assets are worth approximately 14 million ETH, or $28 billion at current prices. He estimates that if ETH attracts half of Bitcoin’s inflows into ETF products, half of the existing coins could be purchased in the first year alone.
Citing Galaxy Digital’s estimates for a Bitcoin ETF, Davis halved the numbers for Ethereum, predicting $7 billion inflows in the first year, $14 billion in the second year, and $20 billion in the third year. Such inflows, combined with increased demand, could lead to a situation where all Ethereum is purchased within three years, Davis said.
Beyond BlackRock’s potential move, Davis also touched on other bullish catalysts for Ethereum. These include the monthly MACD approaching an uptrend and ETH BitcoinIt includes catching the trend of. He also noted that 28.3 million ETH are currently staked, creating an exit queue of more than 2 years and restricting sudden dumping in the market. Davis also noted that ETH’s deflationary nature, EIP-4844’s reduction of gas fees in second layers, and continued migration to second layers will further accelerate Ethereum’s growth.