Ether to hit $6.5k later this year thanks to inflows into spot ETFs: $ETH
Steno Research forecasts net inflows of $15-20 billion into ether spot ETFs in the first 12 months.
-- Ether is expected to reach $6500 later this year due to strong ETF inflows and other positive factors, the report said.
-- Galaxy Research estimates net inflows of $5 billion for ether ETF offerings in the first five months, Bitwise expects $15 billion in inflows in the first 18 months.
The crypto market is overly pessimistic about the upcoming launch of spot ether (ETH) exchange traded funds (ETFs) in the U.S., and net inflows could reach $20 billion in the first year as the Cryptocurrency has qualities that appeal to Wall Street. , said Steno Research in a report on Thursday.
"We continue to forecast net inflows of $15 billion to $20 billion in the first 12 months, even accounting for outflows from Grayscale Ethereum Trust (ETHE)," wrote senior analyst Mads Eberhardt, adding that this should drive the value of ether. , in dollar terms as well as relative to Bitcoin (BTC).
The value of ether is projected to reach at least $6500 later this year due to expected inflows into spot ETFs as well as additional tailwinds, the report said.
Spot ether ETFs are on the cusp of becoming available for trading in the U.S. after the Securities and Exchange Commission (SEC) gave the go-ahead for issuer filings last month. Once the S-1 filings are approved, the new products will begin trading, and reports suggest that could happen as early as next week.
"The smaller inflows into ether ETFs compared to Bitcoin ETFs will have a greater impact on ether due to its lower market capitalization and significantly lower liquidity," and the resulting inflows into spot ETH are likely to surprise the upside rather than the downside, the report added.
Galaxy (GLXY) Research said spot ether ETFs could see net inflows of $5 billion in the first five months. Asset manager Bitwise predicts net inflows of $15 billion in the first 18 months.