Analysts at Bernstein, Gautam Chhugani and Mahika Sapra, predict that the price of Ethereum will surge to $6,600 once a spot ETF is approved. This anticipated approval follows the rise in Bitcoin prices after a similar product was approved by the SEC in January, resulting in a 75% surge. Yesterday, Ethereum’s value experienced a sudden increase due to growing optimism surrounding the approval of exchange-traded funds (ETFs) that track cryptocurrencies. While the reason behind this shift to bullishness is debated, experts agree that the approval of Ethereum ETFs would be a game-changer for the crypto market.
VanEck, an asset manager, has already submitted the first spot Ethereum ETF application to the SEC, and a decision is expected by May 23. Mike Novogratz, CEO of Galaxy Digital, stated that there has been a “widespread pivot” in Washington in the past 24 hours, dramatically changing the game. Joe Lubin, co-founder of Ethereum and founder of Consensys, predicts a high demand for Ether, leading to a supply crunch and higher prices once the ETF is approved. Lubin also noted that institutions that are already exposed to Bitcoin ETFs are likely to diversify into Ethereum.
Matt Hougan, Chief Investment Officer at Bitwise, believes that the mainstreaming of Ethereum will push it to all-time highs. He attributes this not only to ETF optimism but also to legislative progress, with a bipartisan group of lawmakers passing the first pro-crypto legislation in Washington’s history. Timo Lehes, co-founder of blockchain platform Swarm, expects a significant influx of capital into Ethereum following ETF approval, as investors look for diversification beyond Bitcoin.
Ethereum has sustained its rally, with its price currently at $3,722. If the ETFs are approved, the market could experience an even more bullish response, potentially driving Ethereum’s price beyond its current range and testing higher resistance levels at $4,000 or even $4,500. However, Adam McCarthy, an analyst at Kaiko, advises investors to remain vigilant as the lack of staking could affect demand. McCarthy suggests monitoring Grayscale’s $9 billion ETHE product, as significant outflows could impact prices.
