Ethereum
Ethereum at $5,000? Nine experts on the impact of ETF approval on prices – DL News
- Will Ethereum Break Records in June?
- We asked nine experts about their views on the market as ETF approval approaches.
Ethereum soared more than 30% to $3,800 in May after the U.S. approved exchange-traded funds.
Market watchers are now eyeing a new all-time high of over $5,000 as early as June.
As the dust settles, the market is wondering what’s next for Ethereum.
Here’s what the experts say.
Galaxy’s Mike Novogratz
A “widespread” pivot in Washington caused the SEC to change its Ethereum ETF game, said Mike Novogratz, CEO of Galaxy Digital.
If the SEC’s change of heart was politically motivated, “this is a seismic shift,” Novogratz said.
“If this is what actually happened, prices will be much higher than here.”
Since making these comments, the president Joe Biden followed through on his threat to veto a bipartisan-backed pro-crypto bill.
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Brickell from FRNT Financial
Bitcoin and Ethereum will reach all-time highs by the end of June, according to David Brickell, head of international distribution at FRNT Financial.
Spot Ethereum ETF approvals, a more positive outlook on the economy and a handful of pro-crypto votes on Capitol Hill signal that the world’s two leading cryptocurrencies will benefit from strong tailwinds in the coming weeks, a- he declared.
“I wouldn’t be surprised to see $80,000 and $5,000 respectively” for Bitcoin and Ethereum, Brickell told DL News.
Jacob Joseph of CCData
Not only did Jacob Joseph, a research analyst at cryptocurrency data firm CCData, expect Ethereum to hit a new all-time high, but he also said DL News that investors will put $3.9 billion into US Ethereum spot ETFs within the first 100 days of launch.
He extrapolated the sum from the first 10 days’ performance of the 10 spot Bitcoin ETFs.
Nonetheless, he warned that Ethereum could face challenges due to capital outflows from the Grayscale Ethereum Trust, which could hurt market sentiment.
The Grayscale Bitcoin Trust has seen more than $17.7 billion in outflows since its launch in January, according to BitMEX research.
The money mostly went to funds offering lower fees.
Lennix Lai of OKX
Lennix Laiglobal business director of crypto exchange OKX, told DL News that the Ethereum spot ETF will trigger a new wave of demand from institutional investors.
He said they would likely invest $500 million in Ethereum ETFs in their first week.
“This is probably as, if not more, important than the approval of the Bitcoin ETF,” he said.
TzTok-Chad
The industry’s growing sense of optimism prompted traders to invest some $3.4 billion in options purchases — or bullish bets — that Ethereum would surpass $4,000 by June 28.
Positioning in derivatives indicates that many traders are even targeting prices above $5,000, TzTok-Chad, the pseudonymous founder of decentralized options exchange Stryke, said DL News.
However, he warned that the path to a new record is not simple and some volatility should be expected.
Joe Lubin of Consensys
Expect a “deluge” of demand for Ether, which will likely lead to a supply crunch and drive up prices, according to Joe Lubin, co-founder of Ethereum and founder of crypto infrastructure company Consensys.
Institutions that have already had exposure to Bitcoin ETFs “will likely want to diversify into this second approved ETF,” Lubin told DL News.
“There’s going to be quite a lot of natural and pent-up pressure to buy Ether” through ETFs, he said.
He warned that there would be less supply to meet this demand than when spot Bitcoin ETFs were approved in January.
Bernstein
Don’t expect Ethereum ETF flows to reach those seen in Bitcoin funds.
This is what Gautam Chhugani and Mahika Sapra, analysts at the research firm, say. Bernstein.
In a June 3 report, they said ETFs represented an opportunity to take advantage of “pent-up demand from the same participants as the Bitcoin ETF, perhaps with a lower allocation than ETH.”
“And considering the ETH supply situation (staking, smart contracts, HODL data), ETH is expected to see positive price action upon ETF launch (expected in the coming days/at month),” Chhugani and Sapra said.
Kaiko’s Adam McCarthy
Options traders who “rallied” around bullish options are now eyeing gains, said Adam McCarthy, an analyst at Kaiko.
Despite this, he warned that “Hong Kong ETFs have not seen much demand and have had a mixed few days with several days of net outflows already.” The lack of staking is also a big factor and likely has a further impact on demand.
He suggested monitoring Grayscale’s $9 billion ETHE product, “if it experiences significant capital outflows, it would have a significant impact on prices.”
Eric Johansson is the editor-in-chief of DL News. Do you have any advice? Send him an email to eric@dlnews.com.