‘We absolutely believe Ether’ surpassing bitcoin’s total market value ‘can happen this year,’ says ETF expert: ‘The bull case is an Etherum ETF in 2022’

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Hi! Invesco QQQ Trust QQQ,
-1.29%
Over 2% so far this week. This isn’t where many investors would have bet that the popular exchange-traded fund would now trade based on Monday afternoon’s wild action.

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In fact, the Dow Jones Industrial Average (DJIA),
+0.19%

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Day,
+0.19%,
s&p 500 index spx,
-0.51%

Spy,
-0.48%
and Nasdaq Composite Index Comp,
-1.30%

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ndx,
-1.32%
Seeing weekly gains which at the beginning of Monday seemed impossible. But how quickly this worm can turn and this year may be about regime change, price versus growth and inflation versus deflation. Who will come out on top?

It’s anyone’s guess but it seems that after a bumper year for the market segment, many of those bets are being expressed through ETFs of late.

In any case, Benchmark Investments CEO Kevin Kelly told ETF Wrap that bitcoin is the past and ether is the future of funds.

Send suggestions, or feedback, and find me on Twitter @mdecambre or linkedin, as some of you are used to, let me tell you what we need to cover.

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What is ETF? We will explain

Good
Top 5 beneficiaries of last week

%Display

KraneShares CSI China Internet ETF KWEB,
-4.96%

14.0

VanEck Oil Services ETF OIH,
+0.36%

8.7

Emerging Markets Internet and Ecommerce ETF EMQQ,
-3.86%

7.4

iShares China Large-Cap ETF FXI,
-1.73%

7.3

SPDR S&P Oil & Gas Exploration & Production ETF XOP,
-0.56%

7.0

Source: FactSet, as of Wednesday, January 12, excluding ETNs and leveraged products, NYSE, Nasdaq and Cboe Traded ETFs Include $500 Million or GreteR

…and worse
Top 5 rejecters of the past week

%Display

KraneShares Global Carbon Strategy ETF KRBN,
+1.53%

-6.4

Global X Robotics and Artificial Intelligence ETF BOTZ,
-2.65%

-3.4

iShares US Home Construction ETF ITB,
+1.31%

-3.2

Northshore Global Uranium Mining ETF URNM,
-3.24%

-3.1

Global Ex Uranium ETF URA,
-2.19%

-2.7

Source: FactSet

flipping?

Forget about bitcoin btc/usd,
-1.96%

btc.1,
-2.35%,
Benchmark Kelly says. The real digital asset to be focused on is Ether ETHUSD,
-2.25%
on the Ethereum network. We caught up with Kelly on Thursday and he said that the world’s number 2 asset behind bitcoin is likely to surpass its bigger sister asset because smart-contract networks like ether offer more utility than bitcoin, which is considered a store of value. is seen as. According to CoinMarketCap.com, Kelly said that he envisions a time in the future when ether is the dominant cryptocurrency to exceed bitcoin’s current total value of $819 billion. Ether has a total value of $393 billion, which puts it less than half that of bitcoin.

If Ethereum’s market cap surpasses that of Bitcoin, “flipping” would have occurred, which is what crypto enthusiasts use to refer to that change, according to A post on the Flipping Watch blog, The closest ether has gotten was when it had a price contraction in 2017, but it has since struggled to challenge bitcoin.

“We fully believe there may be a flipping this year,” Kelly told Businesshala.

CoinMarketCap.com

“We believe that as the world continues to digitize, Ethereum is the network for it,” Kelly said.

Kelly says the rise of private blockchains, non-fungible tokens or NFTs, the rise of decentralized finance or DeFi, among other factors, is making ether, the asset that powers them all, beat assets.

“So over the next one, three, five years, we believe that the growth in blockchain applications will be phenomenal and that Ether will absolutely have a role to play in this,” he continued.

This has implications for the ETF world, having been settled on the Bitcoin Spot ETF after the ProShares Bitcoin Strategy ETF BitO,
-2.14%
It was launched last October with much fanfare. Kelly speculates that an explosion of ether-based ETFs could be good coming down the road. They recently withdrew their own filings with regulators for an ether futures ETF, informing the Securities and Exchange Commission that they would first digest the most recent batch of bitcoin futures offerings.

Kelly predicts that an ether futures ETF could be in a bull case this year, but sees his base case as next year.

“I believe the bull case [for an Ether-linnked ETF] is 2022 and the base case is 2023 and the slowdown case is 2024,” he said.

Meanwhile, the ETF specialist has launched a trio of more traditional ETFs listed on the NYSE’s Arca platform.

The first two ETFs charge an expense ratio of 0.78%, which translates to an annual cost of $7.80 for every $1,000 invested with RESI 10 basis points lower. Kelly is the former Managing Director at Horizon ETF.

rate bet

We asked Todd Rosenbluth, head of mutual fund and ETF research at CFRA, what’s interesting in the world of ETFs as of early 2022, with so much focus on inflation and rising interest rates. Here’s what he had to say:

With interest rates expected to rise in 2022, rate-hedged fixed income ETFs are likely to attract attention.

He added that ETFs like ProShares Investment Grade Interest Rate Hedged ETF IGHG,
-0.20%
The iShares Interest Rate Hedged Corporate Bond ETF was worth a look with the LQDH,
-0.23%,
which provide the credit exposure found in traditional investment-grade corporate bond ETFs such as the iShares iBoxx Investment Grade Corporate Bond ETF LQD,
+0.07%
But “without the negative effects tied to duration.” Rosenbluth said these hedged ETFs have outperformed to start 2022 and over the past year, though they lag more than three years as rates were falling in the past.

IGHG has an expense ratio of 0.30%, LQDH’s 0.24, while LQD’s is 0.14%. LQD is by far the largest at $37 billion in assets, with the other two at around $1 billion per piece. Performance-wise, IGHG Youth is up 0.2% year on year, but iShares products are down marginally.

week view

ARK’s 10 Year Yield Anchor

Instinet. Through

Frank Capellari, market technician and executive director of Instinet, says that during ARK InnovationarkkCathy Wood’s flagship disruptive innovation ETF has been in trouble since last February, saying “its performance is at its worst during a period of rising rates. This has been especially evident since early December.”

and inflation bonus

via Astoria Portfolio Advisors

“We think advisors should rebalance their portfolios to prepare for structurally higher inflation in the coming years,” write the people at Astoria.

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,that’s a wrap

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