Ethereum
Could Holding 6 (ETH) still make you a millionaire? Cathie Wood’s Ether ETF withdrawal and her $20 trillion market cap prediction
Could Holding 6 (ETH) still make you a millionaire? Cathie Wood’s Ether ETF withdrawal and her $20 trillion market cap prediction
Earlier this year, Bitcoin dominated financial news thanks to its recent halving and the emergence of spot exchange-traded funds (ETFs), which boosted its demand. However, Cathie Bois from Ark Invest has made a bullish prediction that Ethereum (ETH) could soon catch up with Bitcoin and potentially provide investors with significant returns in the coming years.
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Speaking at Big Ideas, an investor conference hosted by Ark Invest, Wood shared his bullish outlook on Ethereum. It projects that Ethereum’s market cap could reach $20 trillion by 2032. Given Ethereum’s current supply of approximately 122 million tokens, this projection translates to a staggering price per token of more than $166,000. Additionally, as the Ethereum Foundation continues to implement token burns, this price could increase further.
At the hypothetical price of $164,000 per token, holding six ETH would equate to a value of just under $1 million. In comparison, the current price of six ETH is around $21,000. To put this into perspective, the total market capitalization of the S&P 500 is around $40 trillion, while the global value of above-ground gold reserves is estimated at around $16 trillion. While it is theoretically possible for Ethereum to reach a market cap of $20 trillion, such a milestone is likely far away, if at all.
Wood’s optimistic predictions are primarily based on the potential for mainstream adoption of Ethereum. Today, Ethereum is primarily used to interact with decentralized finance (DeFi) applications, which offer services ranging from borrowing and lending to storing health records.
However, in 2024, DeFi remains predominantly focused on small-scale financial platforms. Wood argues that if Ethereum can expand its use cases to provide substantial benefits to users, broader adoption could follow, which could drive up the price of the token.
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Wood’s projection, while ambitious, may in part be intended to get investors excited about Ethereum’s future. Despite this optimism, its predictions may not come to fruition as expected. It is crucial to note that Wood has a vested interest in the success of Ethereum. Ark Invest, his company, already offers an Ethereum futures ETF (ARKZ).
However, Bloomberg reported that Ark Investment had pulled out of issuing an Ethereum exchange-traded fund (ETF). Ark had previously submitted an application for place in Ether ETF in partnership with 21Shares, but Ark’s name has now been removed from the record. Despite this withdrawal, Ark’s official statement highlighted the company’s continued confidence in the transformative potential and long-term value of Ethereum. Bloomberg analyst Eric Balchunas suggested the decision may have been influenced by the ongoing “fee war” in the market, which is making it difficult for issuers to be profitable.
The story continues
Although many believed that the introduction of Ethereum spot ETFs would increase ETH prices, when the United States Securities and Exchange Commission (SEC) made a surprising decision to approve the sale of Ether spot ETFs last month, ETH continued to collapse, almost going down. less than $3,000 per token earlier this month. We saw an incredible rebound earlier this week, peaking near $4,000 before hovering around $3,500 again.
An increase in Ethereum trading volume would benefit Wood, particularly with regard to Ark Invest’s financial products. Despite this potential conflict of interest, many investors remain optimistic about the future of ETH. As cryptocurrency adoption continues to grow and the possibility of creating spot Ethereum ETFs looms, ETH has significant potential to reach new price milestones.
This story was previously published on Benzinga and has been updated.
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This item Could Holding 6 (ETH) still make you a millionaire? Cathie Wood’s Ether ETF withdrawal and her $20 trillion market cap prediction originally appeared on Benzinga.com
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