Investor Optimism Following Regulatory Approval
Investors are optimistic about Ethereum after regulators approved ETFs. They predict price increases and highlight Grayscale’s role.
Expected Approval and Market Entry
Cryptocurrency ETFs based on Ethereum might be approved next week. Sources indicate that the SEC is close to a positive decision.
Trading Predictions and SEC Insights
Bloomberg’s Eric Balchunas suggested that Ethereum ETFs might start trading by July 2. Reuters reported they could be approved by July 4.
Analyst Opinions and Market Predictions
SEC Chair Gary Gensler mentioned approval could come by the end of summer. Experts remain confident in a positive outcome. Crypto funds and analysts predict significant investment inflows into Ethereum-based ETFs.
Prospects for Ethereum ETFs
Analysts foresee strong interest in spot Ethereum ETFs. Some optimists predict capital inflows could reach $45 billion in the first year.
Varied Predictions on Inflows
Bitwise’s Matt Hougan aligned with Standard Chartered, suggesting $15-35 billion in the first 18 months. JPMorgan offered a more conservative estimate of up to $3 billion by the end of 2024, possibly $6 billion if staking is included.
Price Impact Predictions
Price predictions for ETH vary. Standard Chartered predicts ETH could hit $8,000 per coin if Bitcoin reaches $150,000. Steno Research forecasts a minimum of $6,500 by year’s end.
Grayscale’s Influence on Ethereum Prices
Investors think Ethereum ETFs’ approval might mirror the Bitcoin ETF experience. Many anticipated significant funds from BlackRock and Fidelity. However, Bitcoin prices fell by over 20% in the first 12 days of trading.
Grayscale’s Market Dynamics
Grayscale’s Bitcoin Trust (GBTC) became an ETF in January 2024, accumulating around $25 billion. Grayscale Ethereum Trust (ETHE) is undergoing a similar transformation, holding nearly $11 billion.
Potential Outflows and Price Impact
JP Morgan predicts ETHE’s conversion to an ETF could lead to a $1 billion outflow, negatively impacting ETH prices. Ethereum’s lower liquidity and volume make it less attractive compared to Bitcoin for institutional investors.
Different Natures of ETH and BTC
JP Morgan noted Ethereum’s role as an application token differs from Bitcoin’s. Bitcoin is more appealing to investors due to its competition with gold in portfolio allocations.
