Steno Research expects that the introduction of Ethereum ETFs in the USA will lead to massive capital inflows and a significant increase in the ETH price. Analysts predict a rise to $6,500 per ETH by the end of the year.
A recent report by Steno Research shows that the cryptocurrency market underestimates the impact of the soon-to-be-approved exchange-traded funds (ETFs) for Ethereum (ETH) in the USA. According to Steno Research, these ETFs are expected to attract significant capital inflows, reaching up to $20 billion in the first year. Despite potential outflows from the Grayscale Ethereum Trust (ETHE), strong capital flows are anticipated. Mads Eberhardt, a senior analyst at Steno Research, is convinced that these substantial inflows will increase the value of ETH in both US dollars and Bitcoin (BTC).
Optimistic Forecast for the Ethereum Market
The report from Steno Research forecasts that the price of ETH could rise to at least $6,500 by the end of this year due to expected inflows into spot Ethereum ETFs and other positive factors. This optimistic assessment comes shortly after the US Securities and Exchange Commission (SEC) provisionally approved the ETF issuers' applications. It is expected that these new financial products may become available as early as next week. Steno Research also predicts that the ETH/BTC ratio could rise to 0.065 over the course of this year, provided the capital inflows meet expectations.
Interestingly, most research firms and analysts are more conservative regarding spot Ethereum ETFs than Steno Research. For example, Galaxy Research expects that spot Ethereum ETFs will attract net inflows of $5 billion within the first five months. Bitwise Asset Management forecasts net inflows of $15 billion for the ETFs within the first 18 months. Despite these differing perspectives, Steno Research remains the most optimistic about the potential impact of spot Ethereum ETFs.
Significance of the Introduction of Spot Ethereum ETFs
The forthcoming introduction of spot Ethereum ETFs represents a significant milestone for the cryptocurrency market. Institutional investors will gain easier access to ETH through ETFs, potentially leading to substantial capital inflows and consequent price increases. This development underscores the growing appeal of ETH on Wall Street and its potential to outperform other cryptocurrencies in the short term.
