The crypto market is abuzz with recent approvals of Ethereum ETFs, sparking discussion and speculation among investors and analysts.
Since Ethereum ETF spot approval Last week, Ethereum only recorded an increase of up to $3,959 so far, before retreating to a current trading price of $3,757.
Although reaching the $3,900 mark represents a significant increase, it still falls short of the dramatic rise anticipated by many following the project’s approval by the US SEC. Spot ETF.
Is the Spot Ethereum ETF Approval Considered?
According to a recent reportExperts are divided on whether the impact of these authorizations has been fully taken into account by the market.
Arthur Cheong of DeFiance Capital spoke about this, emphasizing that the market has not yet adapted to this significant change and such a significant change in market dynamics cannot be instantly reflected in price.
GSR’s Brian Rudick agrees, noting that the trend seen with spot Bitcoin ETFs This could be repeated with ETH, where significant price movements followed both the anticipation and the actual launch of spot ETFs.
Despite Ethereum’s recent gains, the consensus among these market experts suggests that the full potential of the ETF approvals may not yet be realized.
Rudick further revealed that the future price of ETH would likely depend on inflows into the recently launched Ethereum spot ETFs, similar to the trends observed with Bitcoin. He predicts a possible “50-100% increase” in the price of Ethereum compared to the beginning of the month, due to strong inflows into these ETFs.
Meanwhile, Tranchess’ Danny Chong sees the endorsement as only partially “built in.” He expects considerable volatility and possible “sideways trading” in the near term as the market adjusts to “fluctuating supply and demand dynamics.”
Chong highlights that spot ETH ETFs could favor increased institutional adoption and stabilize long-term prices of Ethereum.
Expert predicts $1.8 trillion market cap after ETF approval
Meanwhile, Michael Nadeau, the founder of The DeFi Report, recently analysis the potential effects of the approval of the Ethereum spot ETF on its market trajectory.
Nadeau presented a valuation framework suggesting that the entire crypto market could reach a market cap of $10 trillion. He believes ETH is poised to surpass Bloomberg’s estimated 10-20% of Bitcoin’s net inflows.
According to his projections, ETH could reach a market cap of $1.8 trillion at the peak of this cycle, which, assuming supply remains constant, could push the ETH price to around $14,984.
For comparison, he notes that if Bitcoin reached a market cap of $4 trillion, its price could rise as high as $202,000.
Featured image created with DALL-E, chart from TradingView
