- Spot Ethereum ETFs are anticipated to begin any day soon.
- Some observers of the market predict a price increase to $7,000.
- Some people use greater caution.
Ethereum spot exchange-traded funds are about to launch.
Eric Balchunas, an analyst with Bloomberg Intelligence, stated on Tuesday that issuer VankEck’s 8-A form submission was encouraging for a July 2 start date.
According to industry officials who spoke with Reuters, the ETFs might debut before July 4.
Demand for Ether futures bets on the Chicago Mercantile Exchange increased by 105% to $1.32 billion as excitement grew, almost reaching the exchange’s all-time high of $1.35 billion for Ether open interest.
But what are the opinions of experts? We discovered.
Quinn Thompson of Lekker Capital
According to Quinn Thompson, there has never been a more fashionable time to be a negative cryptocurrency trader than right now, and that’s bullish.
Thompson predicted a tranquil spell as sellers fatigue before a moment of truth hits them in the face and they realize their outlook is excessively pessimistic in a piece published on Wednesday on X.
According to him, that might seem as favorable spot Ethereum ETF flows at launch or even as straightforward as ETF issuers competing to offer the lowest costs.
VanEck has already declared that its spot Ethereum ETF will not be subject to fees.
Thompson concluded with a daring price forecast: by the time of the election in November, Ether will hit $7,000, and Bitcoin will strive to hit $100,000 for the first time.
Matt Hougan of Bitwise
In their first eighteen months on the market, Ethereum exchange-traded products will bring in $15 billion in net flows, according to a recent X article by Bitwise’s Matt Hougan.
On statistics from Europe and Canada, where cryptocurrency exchange-traded funds have developed markets, Hougan based his projection.
Even though investors have poured $56 billion into US Bitcoin ETFs, $15 billion is still a lot less, according to him, and such a sum would still be considered a historic success.
He stated that only four ETFs introduced since January 2020 have received $15 billion in inflows, and he thinks Ether still has plenty of life left in it.
There was a disclaimer on Hougan’s analysis, though.
He stated that traders who engaged in the discount-arbitrage game are likely to redeem their investments from Grayscale’s Ethereum Trust, which could result in an early net outflow from Ethereum ETFs following their introduction.
QCP
QCP, a Singaporean company, is closely watching the launch of the Bitcoin ETF for cues.
The company stated in a report on Monday that if the approval of the Bitcoin ETF was any indication, we would witness a similar 60% gain from here.
In the months following the debut of its ETF, Ethereum would trade at about $5,430 based on current pricing.
Additionally, QCP saw a discrepancy in the market that might raise Ether’s price in the near future.
QCP stated that trading for the ETFs may begin as early as next week, based on VanEck’s S-A filing and the fact that its ETF is already listed by the Depository Trust and Clearing Corporation.
However, the company pointed out that there doesn’t seem to have been any reaction in the July Ether options market.
QCP stated on Wednesday that a significant development in the approval process might surprise the market.
Joe Lubin of Consensys
As for Ether, expect a floodgate of demand that will probably cause a shortage and raise prices, according to Joe Lubin, co-founder of Ethereum and creator of the cryptocurrency infrastructure company Consensys.
According to Lubin, DL News, institutions that have already invested in Bitcoin ETFs will probably wish to diversify into that second authorized ETF.
Bernstein
Analysts at research firm Bernstein predict that spot Ethereum ETFs will propel a 75% jump to $6,600.
By examining how the SEC’s acceptance of spot Bitcoin ETFs in January sparked a 75% rise in the ensuing weeks, they extrapolated that figure.
According to a recent report by Gautam Chhugani and Mahika Sapra, we would anticipate similar price behavior for ETH.
Movers in the cryptocurrency market
- After a day of 0.1% losses, the price of bitcoin is at $61,141.
- At $3,398, Ethereum is up 0.6%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.