Michael Nadeau, founder of The DeFi Report, has published a deep dive into the implications of the approval of Spot Ethereum ETFs on the cryptocurrency's price trajectory.
This analysis follows key regulatory approvals from the US Securities and Exchange Commission (SEC), which approved 19b-4 applications for eight leading financial institutions – Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin.
These approvals, issued by general order on May 23, set the stage for final steps, including awaiting S-1 registration approval before these Spot ETFs can begin trading.
Why could Ethereum price reach 15,000 USD?
The report is based on predictions by ETF experts at Bloomberg, such as James Seyffart and Eric Balchunas, suggesting that inflows into the Ethereum ETF could range between 10-20% of the inflows experienced by the Bitcoin ETF .
Nadeau explains:
“The logic behind these predictions is based on a few key observations – currently, there is less institutional interest in ETH and it is inherently more complex than BTC.
Additionally, Future ETH ETF volume is significantly lower than BTC, ranging from 10-20%, and Spot ETH trading volume is only about half that of BTC.”
He added:
“ETH is more confusing than BTC. Future ETH ETF volume is smaller than BTC (10-20%). Spot ETH trading volume is less than BTC (about 50%). ETH is about 1/3 of BTC's market cap.”
However, according to the researcher, Ethereum's dynamics offer a unique perspective when compared to Bitcoin.
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Nadeau stated:
“Ethereum validators do not incur significant operational costs like Bitcoin miners, which reduces structural selling pressure on the asset.”
This distinction is important in understanding the supply-side dynamics of Ethereum versus Bitcoin.
Nadeau also delved into the current state of Ethereum on-chain activities. A significant portion of Ethereum, around 38%, is effectively ‘soft-locked’ across various mechanisms such as staking contracts and DeFi applications.
This scenario, as Nadeau points out, “helps reduce the available circulating supply, contributing to the reduction of ETH balances on exchanges to levels not seen since 2016 — currently, the number is below 11% of circulating supply.”
Source: https://tintucbitcoin.com/gia-ethereum-co-the-dat-15k-usd/
