A survey by Grayscale and The Harris Poll indicates that US Securities and Exchange Commission (SEC) approval of a spot Ethereum (ETH) exchange-traded funds (ETFs) would likely boost American investment in the digital asset.

Though the long-term performance of these ETFs is uncertain, the poll suggests their introduction will significantly advance the crypto market’s maturity and mainstream adoption.

Ethereum ETF Will Drive Adoption

The poll reveals that nearly one in four likely voters would consider investing in Ethereum if an ETF-based product were approved. This approval would increase their interest in Ethereum and other crypto assets beyond Bitcoin.

Read more: Ethereum ETF Explained: What It Is and How It Works

Grayscale’s findings support analysts’ predictions about Ethereum ETFs’ potential success. Quinn Thompson, founder of Leker Capital, referencing Neil Osborne, stated that the ETH ETF is a proxy for traditional investors who lack exposure to blockchain and crypto beyond digital gold.

“By investing in Ethereum you’re getting exposure to stablecoins/payments, tokenization, DeFi, digital art/NFTs, infrastructure/staking/layer 2 scaling. All of this new technology is built on Ethereum and pays fees for its usage and activity which accrues as revenue to the ETH network and token,” Quinn explained.

This perspective leads many market experts to anticipate significant investment inflows once trading begins. Charles Yu, Vice President of Research at Galaxy Digital, estimated that ETH ETFs might attract up to $1 billion in monthly inflows during the first five months. Similarly, Bitwise CIO Matthew Hougan predicted $15 billion in inflows within the first 18 months.

Despite the potential for high success, 25% of Grayscale respondents said that ETF approval would not influence their investment interest. The survey also highlighted that a considerable portion of the population remains unfamiliar with spot Ethereum ETF. It shows that around 43% of US voters were unaware of it.

Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?

Meanwhile, the survey shows crypto has become an increasingly important subject for American voters. According to the survey, a third of American likely voters have become more open to crypto since the beginning of this year, and 47% of them believe that crypto will eventually wind up in their investment portfolios.

Bitcoin’s (BTC) price has barely recovered from the debacle of momentum witnessed over the last few days. 

Nevertheless, the cryptocurrency appears to be under the threat of further drawdown due to not bearishness but bullishness of the investors.

Bitcoin Faces a Challenge

Bitcoin’s price fell from $62,000 to $53,300, shocking the crypto market and killing many bullish dreams. The futures market registered long liquidations amounting to $263 million in three days.

This is the second-highest liquidation in the last two weeks, with the previous high noted three months ago in April. Generally, such high liquidations tend to calm investors down and make them step back to let the market cool down.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

However, BTC holders do not seem to agree with this opinion. The drawdown is considered to be facing the impact of Federal Reserve Chair Jerome Powell’s bearish speech earlier this week. Thus, the investors expect a quick recovery and are prepared to profit from it.

Analyst Willy Woo highlighted this in his explanation of the difference between buying futures and buying spot. He denoted that the former results in a bearish environment and stated that this could cause further losses.

According to the Bitcoin Open Value Oscillator, about half a million long contracts are still open in the futures market. Should Bitcoin’s price fall further, these longs could be liquidated. This will result in an extended period of bearishness for BTC.

BTC Price Prediction: Validating the Pattern

Bitcoin’s price, trading at $56,961 at the time of writing, is stabilizing after nearly falling to $53,300 yesterday. The cryptocurrency has yet to fulfill the expected 17% drawdown arising from the double top formation from four months ago.

This prediction targets a drop to $50,900, which will lead to massive long liquidations, as mentioned above. Should BTC lose its support of $55,000, this would become more probable.

Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030

On the other hand, if Bitcoin’s price manages to bounce back from $55,000 and flip $58,800 into support again, recovery could begin. This would enable a rise to $60,000 to invalidate the bearish thesis.