🚨 ETHEREUM COULD DROP 30% AFTER SPOT ETF LAUNCH 🚨
💥 Mechanism Capital's Andrew Kang warns that Ether (ETH) might drop to $2,400 following the launch of spot Ether ETFs, a nearly 30% decrease from its current price of $3,410.
🔍 Less Institutional Interest: Kang argues that, unlike Bitcoin, Ether doesn't attract much institutional interest. He believes there are limited incentives to convert spot Ether into ETFs, and the network's cash flows haven't impressed investors.
🗨 Kang's Prediction: “How much upside would an ETH ETF provide? I would argue not much,” Kang stated in a June 23 X post. He predicts Ether could fall to a range of $2,400 to $3,000 after the ETF launch.
📉 Market Context: Ether had previously surged to over $4,000 in March, coinciding with Bitcoin reaching new all-time highs. However, the anticipated ETF impact may not match these previous highs.
📊 Smaller Flows Compared to Bitcoin ETFs: Kang estimates that spot Ether ETFs will attract only 15% of the flows seen by spot Bitcoin ETFs. Extrapolating from Bitcoin's $5 billion inflow in the first six months, this suggests a mere $840 million for Ether ETFs over the same period.
🔮 Divergent Opinions: Not all analysts agree with Kang. Patrick Scott, known as Dynamo DeFi, expects a directional movement similar to Bitcoin ETFs but doesn't foresee Ether's price doubling. Meanwhile, VanEck predicts spot Ether ETFs could drive Ether to $22,000 by 2030.
🛠 Real-World Asset Tokenization: While institutions like BlackRock are exploring asset tokenization on Ethereum, Kang is skeptical about its immediate impact on Ether’s price.
📉 ETH/BTC Ratio: Kang predicts the ETH/BTC price ratio could drop from 0.054 to as low as 0.035 over the next year. However, he also suggests that a Bitcoin rally to $100,000 could pull Ether to a new all-time high.
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