According to a recent Steno Research report, inflows into spot Ether exchange-traded funds (ETFs) could potentially reach $20 billion in their inaugural year. The firm contends that Ether’s appeal to Wall Street investors suggests optimism in the crypto market, despite concerns over the launch of spot ETH ETFs.
Senior analyst Mads Eberhardt forecasts a substantial capital influx, projecting between $15 billion and $20 billion in net inflows within the first year, even factoring in potential outflows from the Grayscale Ethereum Trust (ETHE).
Eberhardt believes this influx will not only bolster Ether’s dollar value but also enhance its position relative to Bitcoin. The report suggests that Ether could achieve a minimum price of $6,500 by year-end, buoyed by anticipated ETF inflows and favorable market conditions.
The imminent launch of spot Ether ETFs in the U.S., pending SEC approval of recent filings, could commence trading as early as next week, as indicated by Steno Research. The report posits that successful ETF inflows could strengthen the ether/bitcoin ratio to 0.065 by year-end, highlighting Ether’s potential for value appreciation given its market dynamics compared to Bitcoin.
While Steno Research remains optimistic, other forecasts differ. Galaxy Research anticipates $5 billion in net inflows within five months, while Bitwise Asset Manager predicts $15 billion within the first 18 months.
Conversely, Andrew Kang of Mechanism Capital warns of a potential drop in Ether’s price to $2,400 post-ETF launch, citing lower institutional interest compared to Bitcoin and limited incentives for spot Ether conversion into ETFs.
In parallel, several major asset managers, including VanEck, BlackRock, and Grayscale, have submitted updated Ethereum ETF proposals to the SEC, aiming to align their offerings with market demands and competitive fee structures.
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