Optimism Grows as Spot Ether ETFs Near U.S. Launch

Published by

Vignesh S G

June 28, 2024

The crypto market is buzzing with optimism as the launch of spot ether exchange-traded funds in the U.S. draws near. With the Securities and Exchange Commission recently approving filings from issuers, these ETFs could start trading very soon, potentially shaking up the market.

Read on to know the kind of impact we expect in the Ethereum market due to the launch of the Ethereum Spot ETFs.

Predictions about the Impact of Ether Spot ETFs on Ethereum

Steno Research forecasts net inflows of $15 billion to $20 billion for spot ether ETFs in the first year. Senior analyst Mads Eberhardt believes these inflows will significantly boost 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, ether’s price oscillated between a peak of $3,859.6 on June 5 and a low of $3,347.8 on June 24, indicating a range market.

Future Ethereum Price Expectations

Eberhardt expects ether to reach at least $6,500 later this year due to the anticipated inflows and other positive factors. If the predictions hold true, the ether/bitcoin ration could strengthen to 0.065 by year-end. Today, ether is valued at BTC 0.05600, which is a 0.6% increase since yesterday and a 2.2% increase over the past week. Its 30-day change is -0.4%, and its 1-year change is -8.7%. In the last 24-hours, it has risen by 0.1%.

Ether ETFs & Bitcoin ETFs: A Comparative Analysis

The total market cap of Ethereum ETFs stands at $285.74 million, with 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. The total market cap of Bitcoin is $1.21 trillion, while Ethereum’s total market cap is $414.59 billion.

Other Major Predictions about the Impact of Spot ETH ETFs

Steno Research’s outlook on spot Ether ETF inflows is more optimistic than other firms. For instance, Galaxy Research predicts $5 billion in net inflows within the first five months, and Bitwise forecasts $15 billion over 18 months. Eberhardt argues that a small inflow into ether ETFs compared to Bitcoin ETFs will have a more significant impact due to ether’s lower market capitalisation and poorer liquidity.

As the launch of spot ether ETFs approaches, the crypto market is set for potential major shifts. Steno Research’s optimistic predictions highlight the substantial impact these new financial products could have on ether’s value and the broader market dynamics.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.