As the anticipation for Ethereum Spot ETFs grows, the crypto community is abuzz with predictions. With the trading of these ETFs expected to commence shortly, possibly before the 4th of July, the sector is closely monitoring the developments. The recent 8-A filing by VankEck has been interpreted by Eric Balchunas of Bloomberg Intelligence as a positive sign, hinting at a potential launch on July 2nd.
Quinn Thompson of Lekker Capital views the current pessimism in the crypto market as a precursor to a bullish phase. He envisions a period of tranquility as the selling pressure eases, followed by a sudden realization among investors that their bearish stance may have been excessive. This shift could be catalyzed by favorable inflows into spot ETH ETFs at their inception or by a competitive race among ETF providers to lower their fees. Thompson boldly forecasts that Ethereum’s price will soar to $7,000, while Bitcoin will test the $100,000 mark around the time of the November elections.
Matt Hougan of Bitwise anticipates that Ethereum ETFs will garner $15 billion in net inflows within their first year and a half. His projections are grounded in the performance of crypto ETFs in Europe and Canada, where they have already gained a foothold. Although this figure pales in comparison to the $56 billion channeled into US Bitcoin ETFs, Hougan regards it as a monumental accomplishment. He cautions, however, that Ethereum ETFs might initially experience net outflows as investors transition away from Grayscale’s Ethereum Trust.
Taking cues from the Bitcoin ETF launch, QCP Capital from Singapore suggests that a similar 60% surge in Ethereum’s price could be on the horizon, potentially elevating it to approximately $5,430 in the ensuing months post-ETF introduction.
In related news, Joe Lubin, co-founder of Ethereum and head of the crypto infrastructure company Consensys, predicts a surge in demand for ETH, which could result in a supply crunch and an uptick in prices. Lubin believes that institutions with existing Bitcoin ETF investments will be keen to diversify with this new ETF offering.
Analysts at Bernstein, including Gautam Chhugani and Mahika Sapra, estimate that the approval of spot Ethereum ETFs could propel ETH’s price by 75%, reaching $6,600. This projection is based on the market response to the SEC’s sanctioning of spot Bitcoin ETFs earlier in January, which led to a significant price rally. They anticipate a comparable trajectory for Ethereum.
Please note, this content is not intended as financial advice.
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