Ethereum
Eyeing $5,000 as $15B Spot Ethereum ETF Inflows Persist?
Ethereum Price Prediction: As a spot Ethereum ETF As the exchanges approach, forecasts point to massive inflows of up to $15 billion. According to a report by Matt Hougan, Head of Investments at Bitwise, this milestone could be achieved in just 18 months.
Meanwhile, the crypto market has sent mixed signals this week, starting with a sell-off on Monday and an immediate recovery on Tuesday. Ethereum price hovered at $3,376 around the US session on Wednesday, June 26, and after a 5% correction in seven days.
Bitcoin stabilized above $61,000 after a rebound from $60,000 support. CoinGecko the data shows no change in the total market capitalization which stands at $2.386 trillion.
How Spot Ethereum ETFs will achieve $15 billion in net inflows
According to Hougan’s analysis, investors are likely to buy Bitcoin And Ethereum ETF based on their respective market shares.
Currently, Bitcoin represents a cumulative market capitalization of 74%, with investors in the UNITED STATES injecting $56 billion into BTC ETFs since approval on January 10, 2024.
Bitwise predicts that US investors will have invested $100 billion Bitcoin ETF by the end of 2035, as more fund managers allocate funds to the digital product.
Hougan argued that “using that $100 billion figure as a benchmark, ether spot ETPs would need to attract $35 billion in assets to reach parity, a process that I expect will take about 18 months.”
It should be borne in mind that the existing Grayscale Ethereum Trust worth $10 billion and waiting to be converted into an ETF. This implies that Ethereum ETFs will only need $25 billion to reach the $35 billion target.
However, this is unlikely to be the case given that in Canada, Ethereum ETP represent between 22 and 23% of total assets under management (AUM). In other words, Ether ETFs could underperform relative to the total market cap weighting.
Therefore, the Bitwise report reduces its estimate to $18 billion in 18 months, of which $3 billion is allocated to unforeseen market factors, to arrive at a $15 billion outlook for Ethereum spot ETFs.
Ethereum Price Forecast: When is ETH Likely to Hit $5,000?
The price of Ethereum is currently mired in uncertainty, the same uncertainty that is preventing many cryptocurrencies, including Bitcoin, from entering the bull market.
Ethereum Price Forecast Price Chart | Commercial view
A descending channel on the four-hour chart guides the pullback from May’s high of $3,972. Major support lies at $3,300, as highlighted by the black band.
In the event of a breakout, the decline could extend to $3,200, with $3,000 and $2,800 not far away. The relative strength index (ROI) The downtrend strengthens the bearish grip, implying that the sell-off is not over.
On the positive side, the upcoming trading of Ethereum spot ETFs could change market sentiment, encouraging traders to buy ETH for a breakout above $4,000.
This Ethereum Price Prediction reveals that if net ETF inflows increased significantly, a rally could break out, leading the smart contracts token to hit the $5,000 mark.
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