- Independent macroeconomic, geopolitical, and cryptocurrency research firm Steno Research forecasts that the spot ether exchange fund (ETF), which is expected to be live in early July, will push ETH to $6,500.
- According to Steno’s most recent post on the topic, Ether ETFs are expected to generate up to $20 billion in inflows this year, outperforming the predictions of top analysts.
Ether to Reach $6,500, According to Steno Research, Owing to Spot ETFs
The macroeconomic and cryptocurrency-focused research organization Steno Research has released its forecasts for the behavior of the cryptocurrency market in light of the impending trading of spot ether exchange-traded funds (ETFs).
While some market analysts, like as Eric Balchunas and James Seyffart, have projected that these instruments will only be able to take in 10% to 20% of the inflows that their bitcoin counterparts took in this year, Steno has a different outlook.
This would imply that ether exchange-traded funds (ETFs) would only see inflows of $1.5 to $3 billion, making them unsuccessful in comparison to their bitcoin equivalent. However, Steno thinks these projections are wildly inaccurate, projecting that ether ETFs will draw in $15–20 billion in capital during their first year of trading—including potential withdrawals from the Ethereum Grayscale Trust—and that this will positively impact the movement of prices in the larger cryptocurrency market.
Similarly, in addition to other causes, this increasing demand will drive ETH prices up to $6,500. As a result, the ETH/BTC ratio—which is presently at 0.05—will increase to 0.065. This is mostly because, according to Steno, we think the market is as gloomy as everyone else is about Ethereum ETFs.
The start of trading for these ETFs has not been officially announced, but analysts like Steno Research predict that it will happen in the first few days of July. This is because there have been comparatively few comments made on the S-1 filings, which are documents in which ETF issuers detail the internal operations of these instruments and which suggest that the launch of the spot ether ETFs may be approaching soon.
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.
