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Ethereum Eyes $6,500 on Strong ETF Inflows

Arslan Butt•Monday, July 1, 2024•1 min read

Ethereum Eyes $6,500 on Strong ETF Inflows
Can Ethereum price shoot up to $6,500 when spot ETFs launch?

Ethereum (ETH) is experiencing a surge in optimism as the long-awaited approval of spot ETFs in the U.S. nears. Analysts predict significant inflows into these ETFs, fueling a potential price rise for ETH to $6,500 by the end of the year.

Key Drivers of Ethereum’s Bullishness

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The SEC’s green light for spot ETFs is expected to unlock massive institutional investment in ETH. Steno Research predicts net inflows between $15 billion and $20 billion in the first year, significantly impacting ETH’s value.

ETF inflows will likely increase demand for ETH, while staking continues to reduce its circulating supply. This scarcity could drive the price upwards.

Steno expects the ETH/BTC ratio to reach 0.065 due to a potentially higher impact of inflows on ETH’s price compared to Bitcoin.

Current Landscape

While initial reports suggested a July 4th launch, the process is expected to take longer. Issuers need to address SEC comments and refile by July 8th, with a final launch date yet to be determined.

Ethereum 2.0 Staking Gains Traction

The number of unique depositors on the ETH 2.0 staking network has jumped by 4.35% since the SEC’s approval news, indicating growing investor confidence.

Regulatory uncertainty remains regarding the possibility of ETFs offering staking yields to investors.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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