Original title: Ethereum to $ 5, 000? Nine experts on how the ETF approval will impact prices
Original article by Eric Johansson, DL News
Original translation: Ismay, BlockBeats
Editor's Note: With the approval of the US spot Ethereum ETF, the market's enthusiasm for Ethereum is high. Industry experts have predicted that the price of Ethereum will usher in a new round of increases. Institutional analysts such as Galaxy, FRNT Financial, CCData, OKX, and Consensys have expressed their views that the demand from institutional investors will drive the price of Ethereum up. However, they also warned of potential market challenges and volatility. This article brings together views from all sides to take you to explore the future prospects of this important market trend.
Ethereum surged more than 30% to $3,800 in May following the approval of an ETF in the U.S., and market watchers now expect Ethereum to hit new highs of more than $5,000 in early June. As the dust settles, the market is speculating on Ethereum’s next move.
Here's what the experts think.
Galaxy
Galaxy CEO Mike Novogratz said a “broad” shift in Washington led the SEC to change its stance on an Ethereum ETF.
If the SEC’s about-face is politically motivated, “that would be a significant change,” he said. “If that were true, prices would be much higher than they are now.”
However, since his comments, President Joe Biden has made good on his threat to veto a pro-cryptocurrency bill that had bipartisan support.
FRNT Financial
David Brickell, head of international distribution at FRNT Financial, said Bitcoin and Ethereum will hit new all-time highs by the end of June.
He said the approval of a spot Ethereum ETF, a more positive economic outlook and a slew of crypto-friendly votes on Capitol Hill suggest the two world-leading cryptocurrencies will enjoy strong tailwinds in the coming weeks.
“I wouldn’t be surprised to see Bitcoin hit $80,000 and Ethereum hit $5,000.”
CCData
Jacob Joseph, a research analyst at CCData cryptocurrency data company, not only expects Ethereum to set a new record, but also believes that investors will invest $3.9 billion in the first 100 days of the launch of a U.S. spot Ethereum ETF. He extrapolated this number from the performance of 10 spot Bitcoin ETFs in their first 100 days.
Even so, he warned that Ethereum could face challenges from outflows from the Grayscale Ethereum Trust, which could weigh on sentiment.
According to BitMEX research, the Grayscale Bitcoin Trust has seen more than $17.7 billion in outflows since its launch in January, with the money primarily going to funds with lower fees.
OK
Lennix Lai, global chief commercial officer at OKX, said a spot Ethereum ETF would trigger a new wave of demand from institutional investors.
He said they could potentially put $500 million into the Ethereum ETF in the first week. “It could be as significant as the Bitcoin ETF approval, if not more significant.”
TzTok-Chad
Growing optimism in the industry has prompted traders to invest about $3.4 billion in call options, betting that Ethereum will exceed $4,000 by June 28.
TzTok-Chad, the anonymous founder of decentralized options exchange Stryke, said positioning in the derivatives market suggests many traders are even targeting prices above $5,000.
However, he warned that the road to a new record would not be smooth and some volatility was to be expected.
Consensys
Joe Lubin, founder of Consensys and co-founder of Ethereum, said he expects a "flood" of growth in demand for Ethereum, which could lead to supply constraints and drive prices higher.
Lubin said institutions that have already dabbled in bitcoin ETFs “will likely want to diversify into a second approved ETF.”
“The natural and pent-up demand to buy Ethereum via an ETF will be very large, but the supply to meet that demand will be less than it was when a spot Bitcoin ETF was approved in January,” he said.
Bernstein
Don’t expect Ethereum ETFs to see inflows at the same level as Bitcoin funds, said Gautam Chhugani and Mahika Sapra, analysts at research firm Bernstein.
In their June 3 report, they said the ETF represents an opportunity to capitalize on “pent-up demand from the same participants in the Bitcoin ETF, who may have a lower allocation to Ethereum.”
“Given Ethereum’s supply picture (staking, smart contracts, holdings data), Ethereum should see positive price performance when the ETF launches (expected sometime in the next few days/month),” Chhugani and Sapra said.
Quay
Adam McCarthy, an analyst at Kaiko, said traders around call options are now seeing gains.
Even so, he warned, “ETFs in Hong Kong have not seen much demand and have experienced several days of net outflows. The lack of collateral is also a significant factor and may further affect demand.”
He suggested keeping an eye on Grayscale’s $9 billion ETHE product, “If there is a large outflow, that will have a significant impact on the price.”
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