ETFs
Ether for $7,000? Six experts on how Ethereum ETFs will trigger a ‘flood’ of demand – DL News
- The launch of Ethereum spot ETFs is expected shortly.
- Some market observers expect the price to climb to $7,000.
- Others are more cautious.
The launch of Ethereum spot exchange traded funds is imminent.
Eric Balchunas, analyst at Bloomberg Intelligence said On Tuesday, issuer VankEck’s Form 8-A filing was a “good sign” for a July 2 launch date.
Industry leaders said Reuters that ETFs could be launched before July 4.
As enthusiasm grows, demand for Ether futures bets through the Chicago Mercantile Exchange surged 105% to $1.32 billion, close to the record Ether open interest rate of 1. 35 billion dollars.
But what do the experts say? We discovered.
Quinn Thompson of Lekker Capital
The way Quinn Thompson sees it, being bearish has never been cooler among crypto investors than it is today – and bullish it is.
On a Wednesday MessageThompson predicted a period of calm as sellers tire before a “slap in the face” type moment shows them that their outlook is too bearish.
This could look like positive Ethereum ETF flows at launch, or even something as simple as competition among ETF issuers to offer the lowest fees, he said.
Join the community to receive our latest stories and updates
Van Eck has already stated that it will not charge fees for its Ethereum spot ETF.
Thompson finished with a bold price prediction: “Ether will hit $7,000 and Bitcoin will make its first attempt at $100,000 by the November election. »
Matt Hougan of Bitwise
Ethereum exchange-traded products will attract $15 billion in net inflows in their first 18 months on the market, Bitwise’s Matt Hougan said in a recent statement. Message.
Hougan based his prediction on data from Europe And Canadawhere crypto ETFs have established markets.
Although $15 billion is significantly lower than the $56 billion invested by investors in US Bitcoin ETFs, he nevertheless said such a figure would be a “historic success”.
“Just four ETFs launched since January 2020 have gathered $15 billion in flows,” he said, adding that he believes Ether’s best days are ahead of it.
Hougan’s analysis comes with a caveat, however.
He said there was a “good chance” of initial net outflows from Ethereum ETFs after launch, as traders who played the discounted arbitrage game buy back into Grayscale’s Ethereum Trust.
PCQ
Singapore-based QCP is also investigating the Bitcoin ETF launch for clues.
“If the Bitcoin ETF approval was any indication, we could see a similar 60% rally from here,” the company said Monday. note.
With current prices, this would result in Ethereum trading at around $5,430 in the months following the launch of its ETF.
QCP also spotted a market mismatch that could drive the price of Ether higher in the short term.
Based on VanEck SA’s filing and the fact that its ETF is already listed by the Depository Trust and Clearing Corporation, QCP said ETF trading could begin as early as next week.
The company noted, however, that the Ether options market for July does not appear to have responded.
“If there was a substantial breakthrough in the approval process, it could surprise the market,” QCP said Wednesday.
Joe Lubin of Consensys
Expect a “deluge” of demand for Ether, which will likely lead to a supply crunch and drive up prices, according to Joe Lubin, co-founder of Ethereum and founder of crypto infrastructure company Consensys.
Institutions that have already had exposure to Bitcoin ETFs “will likely want to diversify into this second approved ETF,” Lubin said. DL News.
Bernstein
Spot Ethereum ETFs will lead to a 75% surge to $6,600, according to analysts at research firm Bernstein.
They extrapolated this figure by examining how the SEC’s approval of spot Bitcoin ETFs in January spurred a 75% rally in the following weeks.
“We would expect a similar price action for ETH,” Gautam Chhugani and Mahika Sapra said in a recent report.
Crypto market players
- Bitcoin is down 0.1% over the past 24 hours to trade at $61,141.
- Ethereum is up 0.6% at $3,398.
What we read
Tim Craig is DL News’ DeFi correspondent based in Edinburgh. Contact him with advice at tim@dlnews.com.