VanEck Raises Ethereum (ETH) Target to $22,000 Following ETF Hype

Investment asset management firm VanEck has become bolder in its predictions for Ethereum (ETH). The new projection is based on the emergence of Ethereum Spot ETF products that received the green light from the U.S. Securities and Exchange Commission (SEC) in May.

VanEck’s Bullish Case for Ethereum

VanEck says he has raised his 2030 Ethereum price target to $22,000. This potential level would represent a total return of 487% from the current Ethereum price and a compound annual growth rate (CAGR) of 37.8%.

Beyond the influence of fundamental factors like Ethereum ETF spot news, the protocol is also poised to benefit from its ongoing scaling progress and other on-chain data. The company claimed to have analyzed the performance of Bitcoin and Ethereum in traditional and crypto-only wallets. Having done so, he adjusted it for optimal returns to establish the prospective price target.

As for ETFs, VanEck is confident that spot trading of Ethereum ETFs on crypto exchanges will begin very soon. Since the 8 offers were approved by the SEC, anticipation has built as to when S-1 registrations will be the green light for the start of the exchanges.

As market analysts scramble for answers, a recent comment from SEC Chairman Gary Gensler further dampened sentiments. At least approval might only come after a few weeks. If the product eventually makes it to market, it is expected to generate at least $66 billion in free cash flow, according to VanEck’s projections.

“Driven by a strong value proposition for entrepreneurs, the Ethereum network is likely to continue its rapid growth in market share relative to traditional financial market players and, increasingly, Big Tech,” the researchers revealed of VanEck led by Matthew Sigel in a note to investors published Wednesday.

“If it does so while maintaining its dominant position among smart contract platforms, we see a credible path to $66 billion in free cash flow for token holders supporting $2.2 trillion in assets, or $22,000 per piece, by 2030.”

Ethereum remains the attractive Altcoin

Ethereum has faced many challenges while maintaining its lead as the most robust decentralized finance (DeFi) protocol in the industry. From the conversation about scalability to concerns that it is a security, the coin – ETH – has overcome the worst obstacles in its path. Today, with the spot ETF product attached to its brand, it remains the most attractive altcoin on the market.

There has always been a projection that the coin could overthrow Bitcoin in the long term. Although VanEck has remained silent on this specific outlook, the firm has postulated a 70/30 BTC-ETH adjusted portfolio for the best risk-adjusted returns.

Learn more: Ripple President Monica Long Endorses XRP ETF As Inevitable

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