Ethereum ETP will push ETH price over $5,000
(Strategy Cook Yeah)
The first few weeks may be volatile, but by the end of the year, I believe new highs will appear.
ETP fund flows may have a greater impact on Ethereum than Bitcoin.
After the launch of spot ETPs, everyone is concerned about the trend of ETH prices. Here is my prediction: ETP fund inflows will push ETH prices to a new all-time high of over $5,000.
Here are the reasons.
Supply and demand determine everything
The best way to predict the potential impact of ETP launches on commodity prices is to consider supply and demand. ETPs do not change the fundamentals of underlying commodities like ETH, but they do bring new sources of demand.
Observe the changes in Bitcoin prices after the launch of spot Bitcoin ETPs in January. Since then, Bitcoin ETPs have purchased more than twice as much BTC as miners have produced:
BTC purchased by ETPs: 263,965 BTC
BTC produced by miners: 129,181 BTC
This supply and demand difference has led to an increase in prices. Since the Bitcoin ETP launched on January 11, the price of Bitcoin has risen by about 25%; since the market began to anticipate the launch in October 2023, it has risen by more than 110%.
As I mentioned earlier, I expect the new Ethereum ETP to be very successful, attracting $15 billion in new assets in the first 18 months of listing. Currently, ETH is trading at around $3,400, just 29% below its all-time high. Taking these factors into account, if the ETP is as successful as I expect, it will be possible for ETH to challenge its all-time high again.
