Ethereum
Ether at $7,000? Six experts explain how Ethereum ETFs will trigger an “avalanche” of demand – DL News
- The launch of Ethereum spot ETFs is expected any day now.
- Some market watchers expect the price to climb to $7,000.
- Others are more cautious.
The launch of Ethereum spot exchange traded funds is imminent.
Eric Balchunas, analyst at Bloomberg Intelligence said Transmitter VankEck’s Form 8-A submission on Tuesday was a “good sign” for a July 2 launch date.
Industry leaders said Reuters that ETFs could be launched before July 4.
As excitement mounts, demand for Ether futures bets through the Chicago Mercantile Exchange has jumped 105% to $1.32 billion, nearing the exchange’s all-time high of $1.35 billion for Ether open interest.
But what do the experts say? We found out.
Quinn Thompson of Lekker Capital
The way Quinn Thompson sees it, being bearish has never been cooler among crypto investors than it is today — and that’s bullish.
On a Wednesday X positionThompson predicted a period of calm as sellers tire before a “slap in the face” moment shows them their outlook is too bearish.
This could look like positive Ethereum ETF flows at launch, or even something as simple as competition among ETF issuers to offer the lowest fees, he said.
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Van Eck has already said it will not charge fees for its Ethereum spot ETF.
Thompson finished with a bold price prediction: “Ether will hit $7,000 and Bitcoin will make its first attempt at $100,000 by the November election. »
Matt Hougan of Bitwise
Ethereum exchange-traded products will attract $15 billion in net inflows in their first 18 months on the market, Bitwise’s Matt Hougan said in a recent statement. X post.
Hougan based his prediction on data from Europe And Canadawhere crypto ETFs have established markets.
Although $15 billion is significantly less than the $56 billion investors have invested in US Bitcoin ETFs, he nevertheless said such a figure would be a “historic success”.
“Only four ETFs launched since January 2020 have collected $15 billion in flows,” he said, adding that he believes Ether’s best days are ahead of it.
Hougan’s analysis comes with a caveat, however.
He said there was a “good chance” of initial net outflows from Ethereum ETFs after launch, as traders who played the discount arbitrage game withdraw from Grayscale’s Ethereum Trust.
PCQ
Singapore-based QCP is also examining the Bitcoin ETF launch for clues.
“If the approval of the Bitcoin ETF was any indication, we could see a similar 60% upside from here,” the company said in a statement Monday. note.
At current prices, that would translate to Ethereum trading at around $5,430 within months of its ETF launch.
QCP also spotted a market mismatch that could drive the price of Ether higher in the short term.
Based on VanEck’s SA filing and the fact that its ETF is already listed by the Depository Trust and Clearing Corporation, QCP said trading in the ETFs could begin as early as next week.
The company noted, however, that the Ether options market for July does not appear to have responded.
“If there was a substantial advance in the approval process, it could surprise the market,” QCP said Wednesday.
Joe Lubin of Consensys
An “avalanche” of demand for Ether is expected, which will likely lead to a supply crunch and drive up prices, he said. Joe Lubin, co-founder of Ethereum and founder of crypto infrastructure company Consensys.
Institutions that have already gained exposure to Bitcoin ETFs “will most likely want to diversify into this second approved ETF,” Lubin said. DL News.
Bernstein
Spot Ethereum ETFs will drive a 75% surge to $6,600, according to analysts at research firm Bernstein.
They extrapolated this figure by looking at how the SEC’s approval of Bitcoin cash ETFs in January triggered a 75% rally in the following weeks.
“We expect similar price action for ETH,” said Gautam Chhugani and Mahika Sapra said in a recent report.
Crypto Market Players
- Bitcoin is down 0.1% over the past 24 hours to trade at $61,141.
- Ethereum is up 0.6% at $3,398.
What we read
Tim Craig is DL News’ DeFi correspondent based in Edinburgh. Do not hesitate to give him advice at tim@dlnews.com.