News
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 for their thoughts on the market as ETF approval nears.
Ethereum rose more than 30% to $3,800 in May following the US approval of Exchange Traded Funds.
Market watchers are now pointing to a new all-time high of over $5,000 as early as June.
As the dust settles, the market wonders what the future of Ethereum will be.
Here’s what the experts say.
Galaxy’s Mike Novogratz
A “widespread” shift in Washington has caused the SEC to change its approach to the Ethereum ETF, said Mike Novogratz, CEO of Galaxy Digital.
If the SEC’s change of heart had been politically motivated, “it would have been a seismic shift,” Novogratz said.
“If this is what really happened, prices will be much higher than here.”
Since you made the remarks, however, President Joe Biden threatened to veto a bipartisan-backed pro-cryptocurrency bill.
Join the community to get our latest stories and updates
Brickell of 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.
Ethereum Spot ETF approvals, a more positive outlook on the economy and a smattering of pro-crypto votes on Capitol Hill signal that the world’s two largest cryptocurrencies will enjoy strong tailwinds in the coming weeks, he said.
“I wouldn’t be surprised to see $80,000 and $5,000” for Bitcoin and Ethereum, respectively, Brickell told DL News.
Jacob Joseph of CCData
Jacob Joseph, research analyst at cryptocurrency data firm CCData, not only expected Ethereum to hit a new record, but also said DL News that investors will pour $3.9 billion into US Ethereum spot ETFs within the first 100 days of their launch.
He extrapolated the sum from the first 100-day performance of the 10 spot Bitcoin ETFs.
Even so, he warned that Ethereum could face challenges due to outflows from the Grayscale Ethereum Trust, which could prove to be a drag on market sentiment.
According to Grayscale, Bitcoin Trust has seen outflows of more than $17.7 billion since its launch in January BitMEX research.
The money mostly flowed into funds with lower fees.
Lennix Lai of OKX
Lennix Laithe global trading director of cryptocurrency exchange OKX, told DL News that the Ethereum spot ETF will trigger a new wave of demand from institutional investors.
He said they will likely pour $500 million into Ethereum ETFs in the first week.
“It’s probably just as important, if not more, as the approval of the Bitcoin ETF,” he said.
TzTok-Chad
The industry’s growing sense of optimism has prompted traders to invest around $3.4 billion in buying calls – or bullish bets – that Ethereum will 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 the new record is not easy and that some volatility should be expected.
Joe Lubin of Consensys
Expect a “shutdown” in demand for Ether, which will likely lead to a supply crunch and push prices higher, he says Joe Lubin, co-founder of Ethereum and founder of crypto infrastructure company Consensys.
Institutions that have already gained exposure to Bitcoin ETFs “will most likely want to diversify into that second approved ETF,” Lubin told DL News.
“There will be quite a lot of natural, pent-up pressure to buy Ether” via ETFs, he said.
He warned that there will be less supply to meet that 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 according to Gautam Chhugani and Mahika Sapra, analysts at the research firm Bernstein.
In a June 3 report, they said ETFs represent an opportunity to take advantage of “pent-up demand from the same Bitcoin ETF participants, perhaps with a lower allocation to ETH.”
“And given the ETH supply situation (staking, smart contracts, HODL data), ETH should see positive price action upon ETF launch (expected in the next few days/this month),” they said Chhugani and Sapra.
Adam McCarthy of Kaiko
Options traders those who have “crowded” bullish options are now looking at gains, said Adam McCarthy, an analyst at Kaiko.
Even so, he warned that “Hong Kong ETFs have not seen much demand and have already had mixed days with several days of net outflows. The lack of staking is also an important factor and will likely have a further impact on demand.”
He suggested looking at Grayscale’s $9 billion ETHE product, “if it experiences large outflows, that would be significant for prices.”
Eric Johansson is the news editor of DL News. Do you have advice? Send him an email at eric@dlnews.com.