Investment firm VanEck predicts that Ethereum’s (ETH) price could soar to $22,000 per token by 2030, driven by its transformative impact and expected revenue generation for token holders.
In a blog post published on Wednesday, VanEck highlighted the potential approval of spot Ether ETFs in the US. This development would enable financial advisors and major investors to securely hold Ethereum through qualified custodians while benefiting from the advantages of ETFs, such as easy trading and ample liquidity.
VanEck sees Ethereum as a potential disruptor to traditional financial institutions and tech giants like Google and Apple. The firm’s analysts cited Ethereum’s expanding user base, which boasts approximately 20 million active users monthly. Over the past year, Ethereum has processed $4 trillion in settlements and facilitated $5.5 trillion in stablecoin transfers.
Potential $2.2 Trillion Valuation for Ethereum
VanEck projects that if Ethereum maintains its dominance in smart contracts and continues its growth trajectory, it could generate $66 billion in annual free cash flow for token holders by 2030. This would translate to a potential market valuation of $2.2 trillion, or roughly $22,000 per coin.
Analysts Matthew Sigel, Patrick Bush, and Denis Zinoviev from VanEck recommend a 70/30 allocation of Bitcoin to Ethereum (ETH) for crypto-only portfolios. They believe this ratio offers the best balance between risk and potential returns.
“We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world,” they noted. “ETH can be thought of as ‘Digital Oil’ because it is consumed by engaging in activity on Ethereum.”
VanEck’s Ether ETF: Awaiting Regulatory Approval
VanEck’s proposed spot Ether ETF, which has the ticker symbol “ETHV,” is listed on the Depository Trust and Clearing Corporation (DTCC). However, the ETF is currently inactive and cannot be traded until it receives regulatory approval.
In a related forecast, Cryptonews’ Ben Beddow recently predicted that Ethereum will reach a record high of $10,200 by 2029, attributing this rise to the Bitcoin halving event expected in the preceding year.
With these projections, Ethereum’s future looks promising, as both institutional interest and practical applications continue to grow.
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