Could Ethereum ETFs be the catalyst for Ether’s price to reach new heights? According to analysts at Steno, the approval and launch of spot Ethereum ETFs could lead to a surge of capital, potentially driving the price of Ethereum to $6,500 by the end of 2024. The Denmark-based firm predicts a net inflow of $15 billion to $20 billion into these investment products within their first year.
Steno Research points to Ethereum’s appealing qualities to Wall Street as a reason for the expected influx of capital. Senior analyst Mads Eberhardt states that the forecast takes into account the potential outflow from Grayscale’s Ethereum Trust (ETHE) and projects that the expected inflow would drive the price of ETH higher compared to the dollar and Bitcoin.
The Securities and Exchange Commission (SEC) has already granted in-principle approval for spot Ethereum ETFs on May 23, 2024. Steno Research believes that once the subsequent S-1 filings are approved, allowing the new products to begin trading, the inflows will commence. The firm speculates that the S-1 approvals could come as early as next week.
Additionally, Steno predicts that the ETH/BTC ratio will strengthen to 0.065 later this year due to the anticipated inflows from the spot Ethereum ETF. The report highlights that even a smaller inflow into the spot Ethereum ETF would have a more significant impact on Ethereum than a similar influx into the spot Bitcoin ETF on BTC, mainly because Ethereum has a lower market capitalization.
Other firms, including Galaxy Research and Bitwise, have also made predictions regarding the potential inflow for spot Ethereum ETFs. Galaxy Research anticipates a $5 billion net inflow within the first five months of the spot Ether ETF’s launch, while Bitwise predicts a net inflow of $15 billion within the first 18 months.
While these forecasts are promising, it is crucial to approach investment decisions with caution. The information provided in this article is for informational and educational purposes only and does not constitute financial advice. Readers are advised to exercise caution and conduct their due diligence before making any investment decisions.