TL;DR
- Ethereum ETFs in the US are expected to attract $15-$20 billion in the first year.
- Ether value could reach $6,500 by the end of the year.
- Final approval of ETH ETFs is scheduled for early July.
The cryptocurrency market is in anticipation of the imminent approval of Ethereum ETFs in the United States.
Although some analysts and opinion leaders in the crypto world are skeptical about the impact of these financial products, Steno Research presents a much more optimistic perspective.
According to their analysis, Ether ETFs are expected to attract between $15 billion and $20 billion in the first year of their launch, which could boost Ethereum’s value to $6,500 by the end of this year.
The US Securities and Exchange Commission (SEC) already approved the 19b-4 filings on May 23, although the S-1 filings, necessary for the official launch of the ETFs, are still pending.
This last step is seen as a mere formality, so it is anticipated that the ETFs could begin trading as soon as July 2.
The comparison with Bitcoin ETFs is inevitable.
These have recorded a net income of $14.439 billion in just six months.
Analysts such as Bloomberg’s Eric Balchunas and James Seyffart predict that Ethereum ETFs will capture only 10% or 20% of the inflows of Bitcoin ETFs.
However, Steno Research argues that due to ETH’s smaller market cap and comparative liquidity, even a fraction of Bitcoin ETF inflows would have a significant impact on Ethereum.
Steno Research‘s optimism is also reflected in the ETH/BTC ratio prediction.
This ratio is expected to rise to 0.065 towards the end of the year, driven by expected strong inflows from Ether ETFs.
This anticipated increase in the ETH/BTC ratio is particularly significant given that the market has shown considerable pessimism towards this launch.
Market Expectations and Future of Ethereum
The SEC’s approval of Ethereum ETFs in May took the market by surprise, suggesting that many investors and analysts were unprepared for the news.
This skepticism is reflected in Grayscale Trusts discounts.
Prior to the approval of Bitcoin ETFs, Grayscale Bitcoin Trust was trading at a discount of -8.40% to its net asset value.
In contrast, the Grayscale Ethereum Trust was trading at a -22.9% discount a week before the Ethereum ETF approval.
These indicators suggest that the market has not adequately valued the potential of ETFs.
Steno Research argues that despite prevailing negative opinions, Ether ETFs have the potential to attract considerable income streams and trigger a significant increase in the value of ETH.
The performance of ETFs is crucial not only for the price of crypto, but also for stimulating indirect buying in the market.
If ETFs show substantial net inflows, this could incentivize other market participants to acquire more tokens, creating additional buying pressure.
While the market is cautious and some analysts are predicting modest results, Steno Research remains firm in its optimistic forecast.
If their estimates are correct, the launch of Ethereum ETFs could mark a major milestone in the cryptocurrency market and catapult the value of Ethereum to new highs.
