Buckling the current pessimism, a new report by Steno Research suggests Ether (ETH) is set for a significant price increase by year’s end, fueled by the much-anticipated launch of spot ether ETFs in the United States.
The report, published on Thursday by Steno analyst Mads Eberhardt, predicts net inflows of $15–20 billion into these ETFs within the first year, potentially driving the price of Ether(ETH) to at least $6,500. This bullish outlook contrasts with the broader market sentiment surrounding spot ETFs.
Eberhardt highlights the unique qualities of Ether that resonate with Wall Street investors. While acknowledging potential outflows from existing products like the Grayscale Ethereum Trust (ETHE), he emphasizes a stronger net inflow for spot ETFs. This surge in investment, coupled with other positive factors, is expected to propel Ether’s value.
The launch of spot ether ETFs is imminent after the Securities and Exchange Commission (SEC) greenlit filings from issuers last month. With S-1 filings potentially being approved next week, these new investment vehicles could be readily available for trading.
The report also explores the impact of the Ethereum to Bitcoin (BTC) ratio. Steno predicts a rise to 0.065 by year’s end, driven by the influx of capital into spot ether ETFs. The rationale lies in Ether’s lower market capitalization and weaker liquidity compared to Bitcoin. This dynamic suggests that inflows into Ether ETFs will have a more significant price impact, potentially exceeding current projections.
Steno’s optimism surpasses estimates from other market players. Galaxy Research anticipates $5 billion in net inflows for spot ether ETFs within the first five months, while Bitwise predicts $15 billion over the initial 18 months.
While the exact figures remain to be seen, the impending launch of spot ether ETFs in the U.S. undeniably injects a surge of bullish sentiment into the Ethereum market. With Steno leading the charge with a $6,500 price target by year’s end, investors are eagerly awaiting this new chapter for Ether.
