Spot Ethereum approval expected to propel Ether to $6,500 by year-end
The post Spot Ethereum approval expected to propel Ether to $6,500 by year-end appeared on BitcoinEthereumNews.com.
Ethereum has the potential to reach $6,500 this year due to increased investment in spot exchange-traded funds (ETFs) approved by the U.S. Securities and Exchange Commission (SEC). This is according to Steno Research’s report on Thursday. These ETFs are expected to attract between $15 billion and $20 billion in inflows within the year, leading to a surge in ether’s price. The upcoming availability of spot ETFs for trading in the U.S. has generated optimism, with reports suggesting that trading could begin following SEC approvals. Analysts predict that despite outflows from the Grayscale Ethereum Trust (ETHE), the overall influx of capital will significantly enhance ether’s value compared to both the U.S. Dollar and Bitcoin. According to Steno’s research, the ether/bitcoin ratio could strengthen to 0.065 later this year if the estimated inflows materialize. Source: TradingView Since the news of potential approvals for spot Ethereum ETFs broke out, Ethereum’s price has surged over 24% in the past week alone. A significant increase in trading volume has also accompanied this spike. Comparison with Bitcoin ETFs Stenos’ outlook contrasts with cautious estimates from other experts. Galaxy Research anticipates that spot ether ETFs could attract $5 billion in net inflows within five months, while Bitwise, an asset manager, projects $15 billion within the initial 18 months. The significant differences in these forecasts highlight the market dynamics and investor sentiments surrounding ether. A smaller inflow into ether ETFs compared to bitcoin ETFs will have a greater impact on ether due to its lower market capitalization and substantially poorer liquidity. As a result, inflows into ETH spot ETFS are more likely to surprise the upside than the downside. Steno’s research The SEC’s approval of eight spot Ethereum ETFs on May 23, 2024, marked a significant milestone for the crypto industry. The green light given to submissions from…
Filed under: News - @ June 28, 2024 5:24 pm