On 23rd May 2024, the Securities and Exchange Commission (SEC) approved spot Ethereum ETFs.
According to experts, Ethereum (ETH) might be on the brink of a significant price surge. Many of them predict that the recent approval of spot Ethereum ETFs could push the price of Ether to between $15,000 and $22,500. This would represent a gain of up to 500% from its current price of around $3,890.
What’s the Leading Cause of This Change?
The approval of spot Ethereum ETFs is seen as a major positive event for the cryptocurrency.
As per the experts in the industry, “Ethereum ETF approval is one of the most significant bullish events for Ethereum and the entire ecosystem,”
The experts believe this will bring a lot of new investment into Ethereum, even if it doesn’t immediately attract as much attention as Bitcoin ETFs. Over time, the experts expect the capital inflow to be substantial.
The Key Factors Behind the Bullish Prediction
- Staking Benefits: Ethereum offers an annual yield through staking, providing more value than just being a store of value. This makes it attractive to investors looking for both growth and income.
- Versatility: The Ethereum blockchain supports a wide range of applications, including Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs). This gives Ethereum more uses compared to Bitcoin.
- Supply Stability: Since September 2022, Ethereum’s supply has been stable at 120 million. In the 20 months before that, it grew from 114 million to 120 million, a 5% increase. This stability contrasts with Bitcoin, whose supply increased by 2.9% in the same period.
According to experts, “The 20-month period before that date saw ETH supply increase from 114 million to 120 million, an increase of 5%. Today, 20 months since that date, ETH supply remains at the same 120 million,”
Is There Any Connection to Bitcoin?
Ethereum’s price often moves in relation to Bitcoin’s price. With some experts predicting that Bitcoin could reach $150,000 this year, Ethereum might also see significant gains. Ethereum and Bitcoin can be seen as playing different but complementary roles in the crypto market.
According to industry experts, “Bitcoin could become the Dow Jones of crypto ETFs, while Ethereum becomes its NASDAQ,”
The Market Sentiment
The approval of spot Ethereum ETFs has created a lot of excitement. While some forecasts are more conservative, like Standard Chartered’s prediction that Ethereum will reach $8,000 by the end of the year, while come experts’ forecast is more optimistic. They believe that the combination of demand and supply factors will drive Ethereum’s price higher.
The experts says that “Overall, the market is bullish on Ethereum right now, but it’s not bullish enough. Now the spot ETH ETF is approved, all indicators indicate a massive ETH bull run in the coming months,”
What’s Next in ETF Approval?
Though it might take a few weeks for the new ETFs to start trading, the approval has already boosted optimism. If all the predictions we have stated, after research, are accurate, Ethereum could see one of its most significant price increases yet, attracting both new and seasoned investors. As the crypto market evolves, all eyes will be on Ethereum to see if it can achieve these ambitious targets.
If you want to know more about the crypto market and the cryptocurrency mining, you can read our guides. If you have any specific queries, you can reach out to us at minershub.ae.
At Miners Hub, we have been providing services, related to buying ASIC miners, operations, supply chain management, hosting and maintenance for crypto mining and other crypto mining services in the UAE and Middle Eastern Markets.
