📈 When will ETH pump?

GM everyone. This is 2036. We scroll for gems all day so you don’t have to.

Here’s what we’re serving up today 🍲: Green everywhere ✅ Bitcoin. Solana. Illuvium. But since the announcement of a potential Ether ETF - Ether’s been kind of flat. When can we expect it to pump?

Let’s dig in.

The bull market is back.

Altcoins are pumping alongside Bitcoin. Solana & Celestia are the new hot narratives of the day.

Even Avalanche is back on people’s radars.

Coinbase stock is taking off. And $RIOT pumped nearly 10% yesterday.

Green is everywhere… except in ETH.

Sure, ETH isn’t down.

But it’s not mooning like we think it should 🌚

And there could be good reasons for that…

1/ ETHE is absorbing new ETH demand 🏦

You’re probably tired of hearing us talk about ETHE - the Grayscale Ethereum Trust.

In January, it traded at a -59% discount to the value of its underlying ETH.

Smart investors who wanted ETH noticed. Instead of buying ETH directly, you could buy it at a huge discount through ETHE.

It was a killer trade.

Ether is up +71% since January. But in the same time frame, ETHE is up nearly +250%.

Investors who wanted exposure to Ethereum didn’t buy ETH. They bought ETHE. It was the smarter thing to do.

But that arbitrage is closing now. ETHE is now trading at just a -12% discount to its underlying ETH.

This makes the trade a lot less attractive than a few months ago.

Going forward, we’ll likely see a lot of new capital flow into ETH directly, not ETHE.

2/ Crypto survivors are gambling their ETH 🎰

Crypto folks who made it through the brutal crypto bear market survived in one of two ways: holding BTC or ETH.

Everything else went down at least -95%.

But many Bitcoiners don’t want to sell. After all, Bitcoin is an element, like digital gold 🧈 It’s in its own category.

There is no second best.

Ethereum, however, is a technology company. If something better, faster, and cheaper comes along, investors will sell ETH in favor of that new thing.

Right now, that new thing is Solana.

Cathie Wood - the largest holder of ETHE - said yesterday that Solana was faster and cheaper than ETH.

She echoes a sentiment that’s been spreading for the last few months.

Solana is giving Ethereum a run for its money. But that doesn’t mean the SOL narrative will last forever.

Blackrock hasn’t officially filed for an Ether ETF yet.

But when it does, ETH will be in the spotlight again.

For now, people who held ETH during the bear market want to catch the new waves. Gaming, Solana, Celestia, etc.

That’s why so many of the projects currently being pumped are projects from the last cycle - like Avalanche and Illuvium.

But an upcoming Ether ETF will enable institutional players to bet heavily on Ether - the first institutional-grade crypto bond.

We’re holding tight.

1/ Solana spikes after Cathie Wood sings its praises

2/ ETH is picking up again

3/ When in doubt, zoom out