ETFs
Optimism grows as Spot Ether ETFs near US launch
THE cryptocurrency market is bubbling with optimism as the launch of cash exchange-traded funds approaches in the United States. With the Securities and Exchange Commission recently approving issuer filings, these ETFs could begin trading very soon, potentially shaking up the market.
Read on to know what kind of impact we expect on the Ethereum market due to the launch of Ethereum Spot ETFs.
Predictions on the impact of Ether Spot ETFs on Ethereum
Steno Research forecasts net inflows of $15-20 billion for spot ether ETFs in the first year. Senior analyst Mads Eberhardt believes these flows will significantly increase the value of ether, both in dollar terms and relative to bitcoin. Currently, Ether is priced at $3,447.3, with a 30-day change of -9.7%, a 7-day change of -1.5%, and a 24-hour increase of +1.3 %. Earlier this month, the price of ether oscillated between a high of $3,859.6 on June 5 and a low of $3,347.8 on June 24, indicating a range-bound market.
Future Ethereum Price Expectations
Eberhardt expects ether to reach at least $6,500 later this year due to anticipated inflows and other positive factors. If the predictions hold true, the ether/bitcoin ratio could strengthen to 0.065 by the end of the year. Today, Ether is valued at 0.05600 BTC, representing an increase of 0.6% since yesterday and 2.2% over the past week. Its variation over 30 days is -0.4% and its variation over 1 year is -8.7%. Over the past 24 hours it has increased by 0.1%.
Ether ETF vs Bitcoin ETF: A Comparative Analysis
The total market capitalization of Ethereum ETF stands at $285.74 million, with a 24-hour volume of $11.43 million. In contrast, Bitcoin ETFs have a total market cap of $78.42 billion and a 24-hour volume of $1.01 billion. Bitcoin’s total market cap is $1.21 trillion, while Ethereum’s is $414.59 billion.
Other Major Predictions on the Impact of ETH Spot ETFs
Steno Research’s outlook on spot Ether ETF inflows is more bullish than other firms. For example, Galaxy Research forecasts $5 billion in net inflows over the first five months, and Bitwise forecasts $15 billion over 18 months. Eberhardt argues that a small inflow into Ether ETFs compared to Bitcoin ETF will have a greater impact due to Ether’s lower market cap and lower liquidity.
As the launch of spot Ether ETFs approaches, the cryptocurrency market is poised for major changes. Steno Research’s optimistic forecast highlights the substantial impact these new financial products could have on the value of ether and broader market dynamics.
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