The approval of spot Bitcoin ETFs in the U.S. marked a historic milestone for crypto adoption, triggering over $31 billion in net inflows. During this period, however, the ETH/BTC ratio declined nearly 25%. Now, with Ethereum poised to level the playing field through its own spot ETF, many experts argue that Ethereum is significantly undervalued — and that investors should consider “buying the news.”
Joseph Ayoub, former head of crypto research at Citigroup and founder of AI-driven crypto insights platform Rug AI, believes this moment presents a compelling opportunity. According to him, Ethereum’s fundamentals, institutional interest, and technological edge make it a prime candidate for substantial revaluation once spot ETFs launch.
👉 Discover how Ethereum’s next move could redefine crypto investing in 2025.
The Blueprint: How Bitcoin ETFs Transformed the Market
The journey of spot Bitcoin ETFs offers a powerful precedent. In the months leading up to their January 11, 2024 launch, Bitcoin surged 30% on approval speculation alone. In the final weeks before trading began, it climbed another 40%. After launch, institutional demand exploded — more than $31 billion flowed into these products within just two months.
This wasn’t retail momentum. It was institutional adoption in motion. Hedge funds, wealth advisors, and asset managers — including over 500 13F filers — began allocating capital through regulated vehicles like BlackRock’s IBIT and Grayscale’s GBTC. Some major institutions, such as Morgan Stanley, held nearly $270 million in GBTC alone.
The result? Bitcoin rose over 90% from ETF approval to peak, and nearly 170% from its prior cycle low. This shift signaled a new era: crypto was no longer fringe — it was finance.
Now, Ethereum stands at the same threshold.
Why Ethereum Could Outperform Bitcoin Post-ETF
While Bitcoin ETFs validated digital assets as an institutional class, Ethereum brings something different — utility, yield, and scalability. If Ethereum spot ETFs capture even a fraction of Bitcoin’s inflow momentum, the price implications could be profound.
Debunking Common Ethereum Skepticism
Despite growing momentum, skeptics continue to challenge Ethereum’s investment thesis. Ayoub counters these arguments directly:
- “Ethereum is too complex for mainstream investors.”
Critics claim older investors don’t understand smart contracts or decentralized apps. But institutional buyers don’t need to grasp every technical detail — they trust regulated access and proven infrastructure, just as they do with cloud computing or fintech platforms. - “Grayscale’s ETHE is seeing outflows.”
True — but so did GBTC before its conversion to a spot ETF. Premium turned to discount due to arbitrage mechanics and lack of creation/redemption mechanisms. Once ETHE converts to a spot ETF, outflows are expected to stabilize and reverse. - “Institutions don’t care about ETH.”
The opposite is true. Major financial leaders are increasingly vocal about Ethereum’s potential.
Institutional Leaders Bullish on Ethereum
A growing chorus of Wall Street titans sees Ethereum not just as viable, but potentially superior to Bitcoin in the long run:
- Ken Griffin (CEO, Citadel): Believes ETH could surpass BTC in relevance and adoption.
- Carl Icahn (Billionaire Investor): Views Ethereum as both a store of value and a payment network.
- Stanley Druckenmiller (Legendary Macro Investor): Suggests ETH may ultimately overtake BTC in market dominance.
- Jamie Dimon (CEO, JPMorgan): While critical of Bitcoin’s utility, he acknowledges Ethereum’s real-world use cases in enterprise and finance.
- Larry Fink (CEO, BlackRock): Has repeatedly highlighted Ethereum’s role in tokenizing real-world assets — calling it “the future of finance.”
These aren’t marginal voices. They represent the core of traditional finance (TradFi), and their endorsement signals a shift toward broader acceptance of Ethereum as foundational infrastructure.
👉 See how top financial minds are positioning for the next phase of digital asset growth.
Ethereum’s Structural Advantages Over Bitcoin
Beyond sentiment, Ethereum offers tangible advantages that align with institutional priorities:
- Deflationary Supply: Since the Merge and EIP-1559 burn mechanism, Ethereum has become deflationary during periods of high usage — making it rarer over time, unlike Bitcoin’s fixed inflation schedule until 2140.
- Native Yield: Staking rewards provide ~3–5% annual returns, appealing to income-focused investors — a feature absent in Bitcoin.
- Energy Efficiency: Post-proof-of-stake, Ethereum uses 99.99% less energy than pre-Merge levels, satisfying ESG (Environmental, Social, Governance) criteria increasingly mandated by institutional portfolios.
- Programmability & Utility: Ethereum powers DeFi, NFTs, stablecoins, and enterprise blockchain solutions — generating real economic activity and value creation.
These traits make ETH not just a speculative asset, but a productive one — aligning closely with TradFi principles of yield generation and risk-adjusted return.
Issuers Have Skin in the Game — ETF Success Is Incentivized
Spot ETF issuers aren’t passive bystanders — they’re active promoters with strong financial incentives. BlackRock earned approximately $48.9 million annually from IBIT alone (based on $16.3B AUM at 0.3% fee), contributing meaningfully to overall revenue and net income.
With similar fee structures expected for Ethereum ETFs, issuers like BlackRock, Fidelity, VanEck, and Ark Invest will aggressively market their ETH products. Their success depends on inflows — which means education campaigns, media outreach, and distribution partnerships are all on the horizon.
And remember: Ethereum spot ETFs haven’t even launched yet. That means current prices likely don’t reflect future demand from pension funds, endowments, or retail investors accessing ETH through 401(k)s and brokerage accounts.
Price Outlook: Can ETH/BTC Reclaim 0.08?
Ayoub projects that with sustained inflows, the ETH/BTC ratio — which once traded above 0.20 — could recover to 0.06 or even reach 0.08 in the post-ETF environment. That would imply significant upside for Ethereum relative to Bitcoin.
Given Ethereum’s lower market cap compared to Bitcoin despite higher utility and usage metrics (transactions, developer activity, revenue generation), many analysts believe it remains fundamentally undervalued.
👉 Explore strategies for positioning ahead of potential ETF-driven rallies in 2025.
Frequently Asked Questions (FAQ)
Q: What does “buy the news” mean in crypto markets?
A: “Buy the news” refers to purchasing an asset after a major event (like ETF approval), betting that positive momentum will continue despite initial profit-taking. In this case, investors believe Ethereum’s rally has only begun post-approval.
Q: Will Ethereum ETFs launch in 2025?
A: While not guaranteed, multiple applications are under SEC review with strong industry support. Many analysts expect approvals by mid-to-late 2025, potentially coinciding with heightened market activity.
Q: How is Ethereum deflationary?
A: Through EIP-1559, a portion of transaction fees is permanently burned. When network activity exceeds issuance from staking rewards, more ETH is burned than created — resulting in net deflation.
Q: Does staking affect ETF eligibility?
A: Yes — spot ETFs can include staked ETH derivatives or yield-bearing instruments, allowing investors indirect exposure to staking rewards without managing validators themselves.
Q: Could ETH outperform BTC after ETF approval?
A: Historically, BTC leads early cycles while ETH outperforms later stages due to ecosystem growth. With strong institutional interest and structural advantages, many believe ETH is well-positioned for outperformance post-ETF.
Q: Is now a good time to invest in Ethereum?
A: Market timing is uncertain, but with ETF approval likely and valuations still below historical highs, many see current levels as attractive for long-term positioning — especially given Ethereum’s utility and adoption trends.
Final Thoughts: Positioning for the Next Chapter
Ethereum stands at a pivotal moment. With spot ETF approval on the horizon, institutional validation accelerating, and structural advantages over Bitcoin becoming clearer, the case for ETH being undervalued grows stronger by the day.
While past performance doesn’t guarantee future results, the parallels with Bitcoin’s ETF journey suggest significant upside potential. For investors watching closely, now may be the time to consider building exposure — before the next wave of institutional capital flows in.