Key Points
Recent approvals of Ethereum ETFs have caused a stir in the crypto market.
Ethereum’s value has surged to as high as $3,959 following the approval of the spot Ethereum ETF, before retracting to a trading price of $3,757.
However, this increase, although significant, is less than the dramatic surge anticipated by many following the US SEC’s approval of the spot ETFs.
Understanding the Impact of Ethereum ETF Approval
A recent report suggests that experts are divided on whether the impact of these approvals has been fully priced in the market.
Arthur Cheong from DeFiance Capital believes that the market hasn’t yet adjusted to this significant shift.
He suggests that such a major change in market dynamics cannot be instantly reflected in the price.
Brian Rudick from GSR concurs, noting a pattern observed with spot Bitcoin ETFs might repeat with ETH.
He observed significant price movements following both the anticipation of and the actual spot ETF launches.
Despite Ethereum’s recent gains, these market experts suggest that the full potential of the ETF approvals might not yet be priced in.
Rudick also believes that ETH’s future price will likely hinge on the inflows into the newly launched spot Ethereum ETFs.
He predicts a possible “50-100% increase” in Ethereum’s price from earlier in the month, driven by strong inflows into these ETFs.
Danny Chong from Tranchess views the approval as only partially “priced in.”
He expects considerable volatility and potential “sideways trading” in the short term as the market adjusts to the “fluctuating demand and supply dynamics.”
Chong believes that the spot ETH ETFs might foster increased institutional adoption and stabilize Ethereum’s long-term prices.
Meanwhile, Michael Nadeau, the founder of The DeFi Report, has analyzed the potential effects of Ethereum’s spot ETF approval on its market trajectory.
Nadeau has suggested that the entire crypto market could achieve a $10 trillion market cap and that ETH is poised to exceed Bloomberg’s estimated 10-20% of Bitcoin’s net inflows.
According to his projections, ETH could achieve a market cap of $1.8 trillion at the peak of this cycle, which could push the price of ETH to approximately $14,984, assuming the supply remains constant.
For comparison, he notes that if Bitcoin were to attain a $4 trillion market cap, its price could soar to $202,000.
