- Ethereum briefly surpassed the US $4k mark (again), before traders sold out to once again leave the coin dangling just below the resistance level.
- Despite this, spot ETF inflows have erupted in the past fortnight, with Ether funds experiencing over US $2b in net flows.
- Bitwise’s Senior Investment Strategist, Juan Leon, predicts this is a precursor for an Ethereum breakout in 2025.
- He believes that Ethereum’s network is the most likely to capture significant market share of the fast-growing tokenisation industry.
It’s a tale as old as time.
Well, as old as 12 months, actually.
Ethereum once again broke the coveted US $4k milestone (AU $6.31k), only to retreat back under as investors got cold feet.
Despite the hesitation from traders to consolidate above the resistance level, Bitwise Senior Investment Strategist Juan Leon believes that Ether is set for a breakout in 2025.
The catalyst? Tokenisation.
Related: ETH Hits Yearly Highs as BTC Soars to All-Time High Below $108K
Spot Ether ETFs Explode Despite Resistance Holding Strong
Leon’s note to investors kicks off by highlighting Ethereum’s burst in volume over the past ten days. Most of the money has come rushing into spot Ether ETFs, which saw US $2b (AU $3.16b) worth of inflows in that period.
For context, this is eight times more than the market experienced in the four months prior to December.
The coin’s price action in this timeframe hasn’t been particularly compelling, with Ether falling well shy of its 2021 all-time high of US $4.8k (AU $7.6k).
But there is a clear push from institutional investors to gain at least a little exposure to the project heading into 2025.
Tokenised Funds Can Capture Trillion-Dollar Market: Will Ethereum be the Network to Capitalise?
According to Leon, tokenisation is the reason why money is once again flowing into Ethereum.
The sector has made a big push in the past couple of years, with huge asset managers like BlackRock entering the market with their tokenised Treasury fund, BUIDL.
Bitwise believes this is just the beginning.
[Bitwise] think tokenized funds will triple next year, with Ethereum as the driving force behind it.
Juan Leon, Senior Investment Strategist at BitwiseLeon argues that Ethereum has positioned itself as the most “battle-tested” smart contract platform in the industry – already owning 81% of the tokenisation market share.
And if tokenisation truly takes off in 2025, which many believe it will, there’s a lot of money ready to flow onto the blockchain, and according to Leon, Ethereum.
It’s difficult to overstate just how big the RWA market is. Real-world assets are worth roughly [US] $100 trillion globally. It will take time…for much of that to move to tokenized rails. But if it does, fees from RWA-linked assets could exceed [US] $100 billion per year. That’s more than 40x Ethereum’s total year-to-date fees.
Juan Leon, Senior Investment Strategist at BitwiseCredit: Source link
