đ€Will the Price of $ETH Reach $10,000 After the Approval of a Spot Ethereum ETF?
By reviewing BTC spot ETF data, we can reasonably speculate on ETH data. According to BTC ETF data, as of now, BTC ETFs have seen a net inflow of $12.87 billion. Over the past five months, BTC's market cap has increased from $908.42 billion to $1,402 billion. This means that about $12.87 billion in net inflows has driven an increase of approximately $493.58 billion in market cap.
If we translate this to the price of ETH, assuming that a spot ETH ETF gets approved and achieves similar net inflows, the corresponding ETH price would be around $9,000.
However, in reality, the net inflow for an ETH ETF would likely be much lower than $12.87 billion, and there are several critical factors we haven't considered:
1. Acceptance of ETH by Traditional Financial Users: ETH is less accepted by traditional financial users compared to BTC. Therefore, even if a spot ETF is approved, the inflow of funds may not reach the same level.
2. Liquidity Differences in Secondary Markets: The liquidity of BTC and ETH in secondary markets is different, meaning that the same amount of net inflows could have a larger impact on ETH's price.
3. Number of Institutions Applying for Spot Ethereum ETFs: The number of institutions applying for spot ETH ETFs is lower than those applying for BTC ETFs, and their key deadline dates vary, as shown in the chart below.
Additionally, many other factors could influence ETH prices, such as geopolitical factors and on-chain activity (which affects deflation). Even though an ETH ETF is considered an extremely important factor influencing ETH prices, it's not certain that the approval of multiple spot ETH ETFs will lead to ETH reaching $10,000.
However, if an ETF is approved in the short term, it will undoubtedly drive up the price of ETH.
