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Ether to Hit $6.5K Later This Year Driven by Inflows Into Spot ETFs: Analyst

Jun 27, 2024
  • Steno Research predicts net inflows of $15-20 billion into ether spot ETFs in the first 12 months.
  • Ether is expected to hit $6,500 later this year due to strong ETF inflows and other positive factors, the report said.
  • Galaxy Research estimates $5 billion of net inflows to spot ether ETFs in the first five months, Bitwise expects $15 billion of inflows in the initial 18 months.
As an experienced analyst, I believe that the ongoing pessimism surrounding the launch of spot ether ETFs in the U.S. is unwarranted. Based on my research and analysis, I am confident that net inflows into these funds could reach as high as $20 billion in the first year.The crypto market is unduly pessimistic regarding the imminent debut of spot Ether (ETH) ETFs in the US markets, according to Steno Research’s report published on Thursday. If launched, net inflows into these ETFs could potentially reach $20 billion within the first year as Wall Street finds Ethereum‘s unique attributes appealing.
According to senior analyst Mads Eberhardt’s estimation, we anticipate a net investment of between $15 billion and $20 billion within the initial year, despite the withdrawal from the Grayscale Ethereum Trust (ETHE. This forecast is expected to lead to an increase in ether’s value, not only in US dollar terms but also in comparison to bitcoin (BTC).

As a researcher studying the cryptocurrency market, I’ve come across predictions suggesting that Ether could potentially reach a price of at least $6,500 by the end of this year. This projection is based on anticipated inflows into spot Ethereum Exchange-Traded Funds (ETFs), along with other favorable factors.

Ether exchange-traded funds (ETFs) are on the verge of being approved for trading in the United States following the SEC’s acceptance of issuers’ filings last month. Once the S-1 applications are given the green light, these new products will begin trading and could debut as early as next week, according to recent news.

According to Steno’s estimation, if the actual ether ETF inflows match the forecasted figures, then the ratio of ether to bitcoin is expected to increase to 0.065 by the end of this year.

“The disparity in inflows between ethereum ETFs and bitcoin ETFs, given ethereum’s smaller market capitalization and inferior liquidity, will result in a larger price impact on ethereum. Consequently, unexpected flows into ethereum spot ETFs are more likely to cause sizeable price increases than decreases.”

As a crypto investor, I believe Steno is more optimistic than others regarding the future of spot Ether Exchange-Traded Funds (ETFs). Based on Galaxy (GLXY) Research’s analysis, we could witness approximately $5 billion in net inflows within the first five months. According to Bitwise’s forecast, this figure might even reach an impressive $15 billion during the initial 18 months.

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2024-06-28 10:22