Spot ETF Inflows Poised to Drive Ether to $6,500 by Year’s End

Spot ETF: Analysts Forecast Ether to Surge to $6.5K by Year-End, Propelled by Spot ETF Inflows

Spot ETF– The crypto market appears to be overly pessimistic about the upcoming launch of spot ether (ETH) exchange-traded funds (ETFs) in the U.S. According to a report by Steno Research released on Thursday, net inflows could reach up to $20 billion in the first year, driven by ether’s appeal to Wall Street.

We continue to forecast a net inflow between $15 billion and $20 billion in the first 12 months, even considering the outflow from the Grayscale Ethereum Trust (ETHE), wrote senior analyst Mads Eberhardt. He added that this should push the value of ether higher, both in dollar terms and relative to bitcoin (BTC).

Predictions Suggest Ether Will Climb to $6.5K by the End of the Year, Fueled by Spot ETF Inflows

The report predicts that ether could hit at least $6,500 later this year, supported by these expected inflows into spot ETFs and other positive factors. Spot ether ETFs are on the brink of being available for trading in the U.S., following the Securities and Exchange Commission’s (SEC) recent approval of issuers’ filings. Trading could begin as early as next week once the S-1 filings are approved.

If the anticipated inflows into spot ether ETFs materialize, the ether/bitcoin ratio is expected to strengthen to 0.065 later this year, according to Steno. A smaller inflow into ether ETFs compared to bitcoin ETFs will have a greater impact on ether due to its lower market capitalization and substantially poorer liquidity, the report noted. This means inflows into ETH spot ETFs are more likely to exceed expectations.

Steno’s outlook is more optimistic than that of other analysts. Galaxy Research has predicted net inflows of $5 billion in the first five months, while asset manager Bitwise has forecasted $15 billion in net inflows over the first 18 months.

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