Lark Davis, a prominent crypto influencer, has made bold predictions for the prices of Bitcoin and Ethereum in the midst of the altcoin rally. Davis predicts that Bitcoin will reach $150,000 and Ethereum will hit $15,000. He attributes this projection to the growing impact of Bitcoin ETFs, which have been attracting significant daily inflows of capital.
In the United States, Bitcoin ETFs have seen an unprecedented influx of over $2 billion in the past two weeks. On May 21 alone, $305 million was invested in Bitcoin ETFs. These ETFs offer investors exposure to Bitcoin without the need to hold the cryptocurrency directly. Notable Bitcoin ETFs, such as BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and the ARK 21Shares Bitcoin ETF, have all experienced substantial inflows.
Davis anticipates a similar trend for Ethereum ETFs, which are expected to start trading soon. He draws parallels with the conversion of Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF, which saw a significant outflow of assets. According to Kaiko analysts, Grayscale’s upcoming spot Ether (ETH) ETF could experience daily outflows of approximately $110 million. Davis believes that as more investors and institutions invest billions of dollars in these ETFs daily, it will drive up the prices of Bitcoin and Ethereum.
First-quarter reports have revealed that large investors and institutions with assets exceeding $100 million hold over 20% of exposure to US spot Bitcoin ETFs. This includes hedge funds, banks, and even the state of Wisconsin’s pension fund, indicating a growing institutional interest in these ETFs. This also suggests that Ethereum ETFs may see a similar fate once they launch.
While Ethereum ETFs have yet to hit the market, there is speculation that they could reverse Bitcoin ETF inflows and play a significant role in altcoin history. It remains to be seen how these predictions will unfold, but the surge in altcoin prices and the growing interest in ETFs are certainly contributing to the excitement in the market.