As a seasoned crypto investor with a keen interest in Ethereum, I find the recent analysis on Ethereum price forecast and the potential impact of spot Ethereum ETFs quite intriguing. The prospect of massive inflows into Ethereum ETFs, estimated to be up to $15 billion over the next 18 months, is certainly an exciting development.
Ethereum Price Prognosis: With Ethereum ETF trading on the horizon, analysts anticipate significant investments totaling up to $15 billion. As per a report from Matt Hougan, Bitwise’s investment officer, this milestone could be attained within the next 18 months.
Over the past few days, the crypto market has presented contradictory indicators. It began with a steep decline on Monday, only to rebound strongly on Tuesday. As of the US trading session on Wednesday, June 26th, Ethereum’s price hovered around $3,376, having dipped by approximately 5% over the past week.
As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin has bounced back and is now hovering above the $61,000 mark after finding support at around $60,000. According to data from CoinGecko, however, the total market capitalization of all cryptocurrencies remains unchanged, staying put at a staggering $2.386 trillion.
How Spot Ethereum ETFs Will Achieve $15B Net Inflows
Based on Hougan’s assessment, it is anticipated that investors will opt to purchase Bitcoin and Ethereum ETFs due to the significance of each cryptocurrency in its market.
At present, Bitcoin holds a total market worth of approximately 74%, and American investors have injected around $56 billion into Bitcoin ETFs since their authorization on January 10, 2024.
By the year 2035, it’s predicted by Bitwise that US investors will have invested around $100 billion in Bitcoin ETFs, with an increasing number of fund managers choosing to invest in this digital currency.
As an analyst, I would interpret Hougan’s statement as follows: Based on the $100 billion market capitalization of ether, for Ether Exchange-Traded Products (ETPs) to achieve parity, they must amass approximately $35 billion in assets. In my assessment, this growth process will likely unfold over a period of roughly 18 months.
It is worth keeping in mind that the existing Grayscale Ethereum Trust is worth $10 billion and awaiting to convert to an ETF. This implies that Ethereum ETFs will need only $25 billion to reach the $35 billion target.
In contrast to a common assumption, Ethereum Exchange-Traded Products (ETPs) in Canada account for approximately 22-23% of the total assets under management (AUM). Consequently, Ethereum Exchange-Traded Funds (ETFs) might lag behind the overall market capitalization.
As an analyst, I would rephrase that as follows: Based on our latest Bitwise report, we now forecast that the Ethereum ETF market will reach approximately $18 billion within the next 18 months. Of this total, around $3 billion is attributed to unforeseen market factors. Consequently, our outlook for the Ethereum ETFs’ growth now stands at a projected size of $15 billion.
Ethereum Price Forecast: When Is ETH Likely To Blast To $5,000?
The price of Ethereum, as well as that of numerous other cryptocurrencies like Bitcoin, is shrouded in doubt right now, which is impeding their progress into a full-fledged bull market.
On the four-hour chart, a downward trending channel indicates Bitcoin’s pullback from its peak at $3,972 in May. Notably, the significant support level is evident around $3,300, marked by the black band.
As a crypto investor, I’m concerned about the current downtrend in the market. If the support at this level is broken, I believe we could see declines extending to $3,200. The Relative Strength Index (RSI) is adding fuel to the bearish fire, indicating that the sell-off may not be finished yet. We might even see the price dipping down to $3,000 and $2,800 in the near future.
The imminent listing of Ethereum spot ETFs may shift market perception, leading investors to buy Ethereum in anticipation of a price surge above $4,000.
As a crypto investor, I believe that a significant increase in Ethereum ETF net inflows could trigger a powerful rally, potentially propelling the price of Ethereum towards the $5,000 mark due to the growing demand for this popular smart contracts token.
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2024-06-26 16:38