Ethereum
Is Ethereum’s Latest US Spot ETF Approval Priced In? Experts Weigh In
The crypto market is buzzing with the recent approvals of Ethereum ETFs, stirring discussions and speculations among investors and analysts alike.
Since the approval of the spot Ethereum ETF last week, Ethereum has only recorded a surge to as high as $3,959 so far, before now retracting to a current trading price of $3,757.
Although reaching the $3,900 mark represents a significant increase, it falls short of the dramatic surge anticipated by many following the US SEC’s approval of the spot ETFs.
Is Spot Ethereum ETF Approval Priced In?
According to a recent report, experts are divided on whether the impact of these approvals has been fully priced in the market.
Arthur Cheong from DeFiance Capital discussed this, pointing out that the market hasn’t yet adjusted to this significant shift and that such a major change in market dynamics cannot be instantly reflected in the price.
Brian Rudick from GSR concurs, noting that the pattern observed with spot Bitcoin ETFs might repeat with ETH, where significant price movements followed both the anticipation of and the actual spot ETF launches.
Despite Ethereum’s recent gains, the consensus among these market experts suggests that the full potential of the ETF approvals might not yet be priced in.
Rudick further disclosed ETH’s future price will likely hinge on the inflows into the newly launched spot Ethereum ETFs, similar to the trends observed with Bitcoin. He predicts a possible “50-100% increase” in Ethereum’s price from earlier in the month, driven by strong inflows into these ETFs.
Meanwhile, Danny Chong from Tranchess views the approval as only partially “priced in.” He expects considerable volatility and potential “sideways trading” in the short term as the market adjusts to the “fluctuating demand and supply dynamics.”
Chong emphasizes that the spot ETH ETFs might foster increased institutional adoption and stabilize Ethereum’s long-term prices.
Expert Forecasts $1.8 Trillion Market Cap Post-ETF Approval
Meanwhile, Michael Nadeau, the founder of The DeFi Report, has recently analyzed the potential effects of Ethereum’s spot ETF approval on its market trajectory.
Nadeau has outlined a valuation framework suggesting the entire crypto market could achieve a $10 trillion market cap. He believes that ETH is poised to exceed Bloomberg’s estimated 10-20% of Bitcoin’s net inflows.
According to his projections, ETH could achieve a market cap of $1.8 trillion at the peak of this cycle, which, assuming the supply remains constant, could push the price of ETH to approximately $14,984.
For comparison, he notes that if Bitcoin were to attain a $4 trillion market cap, its price could soar to $202,000.
Featured image created with DALL-E, Chart from TradingView