- Will Ethereum break records in June?
- We checked in with nine experts on their views on the market as ETF approval approaches.
Ethereum shot up over 30% to $3,800 in May after US approval of exchange-traded funds.
Market watchers now eye a new all-time high of plus $5,000 as early as June.
As the dust settles, the market is left wondering what’s next for Ethereum.
Here’s what the experts are saying.
Galaxy’s Mike Novogratz
A “widespread” pivot in Washington caused the SEC to change its Ethereum ETF game, said Galaxy Digital CEO Mike Novogratz.
If the SEC’s change of heart was politically motivated, “that’s a seismic shift,” Novogratz said.
“If that’s what actually happened, prices are going to be much higher than here.”
Since he made the comments, however, President Joe Biden has followed through on his threat to veto a bipartisan-backed pro-crypto bill.
FRNT Financial’s Brickell
Bitcoin and Ethereum will reach all-time highs by the end of June, according to David Brickell, head of international distribution at FRNT Financial.
Spot Ethereum ETFs approvals, a more positive outlook on the economy, and a smattering of crypto-friendly votes on Capitol Hill signal that the world’s two leading cryptocurrencies will enjoy strong tailwinds over the next few weeks, he said.
“Wouldn’t be surprised to see $80,000 and $5,000″ for Bitcoin and Ethereum, respectively, Brickell told DL News.
CCData’s Jacob Joseph
Not only did Jacob Joseph, research analyst at cryptocurrency data firm CCData, expect Ethereum to hit a new record, but he also told DL News that investors will pour $3.9 billion into US spot Ethereum ETFs within the first 100 days of their launch.
He extrapolated the sum from the performance of the 10 spot Bitcoin ETFs’ first 100 days.
Even so, he cautioned that Ethereum might face challenges due to outflows from the Grayscale Ethereum Trust, which could prove a drag on market sentiment.
The Grayscale Bitcoin Trust has had over $17.7 billion in outflows since its January launch, according to BitMEX research.
The money has predominantly flowed to funds with lower fees.
OKX’s Lennix Lai
Lennix Lai, crypto exchange OKX’s global chief commercial officer, told DL News that spot Ethereum ETF will trigger a new wave of institutional investor demand.
He said they’ll likely pour $500 million into Ethereum ETFs during their first week.
“It’s probably just as, if not more, important as the Bitcoin ETF approval,” he said.
TzTok-Chad
The growing sense of industry optimism has urged traders to pour some $3.4 billion into buying calls — or bullish bets — that Ethereum will exceed $4,000 by June 28.
The positioning in the derivatives indicates many traders are even targeting prices above $5,000, TzTok-Chad, the pseudonymous founder of decentralised options exchange Stryke, told DL News.
Yet, he warned that the path to the new record is not straightforward and to expect some volatility.
Consensys’ Joe Lubin
Expect a “floodgate” of demand for Ether, which will likely lead to a supply crunch and drive prices higher, says Joe Lubin, co-founder of Ethereum and founder of crypto infrastructure firm Consensys.
Institutions that have already gained exposure to Bitcoin ETFs “will most likely want to diversify into that second approved ETF,” Lubin told DL News.
“There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether” via ETFs, he said.
He warned that there will be less supply to accommodate that demand than when the spot Bitcoin ETFs were approved in January.
Bernstein
Don’t expect Ethereum ETF flows to hit those seen in Bitcoin funds.
That’s according to Gautam Chhugani and Mahika Sapra, analysts at research firm Bernstein.
In a June 3 report, they said ETFs represent an opportunity to leverage “pent-up demand from the same participants as the Bitcoin ETF, maybe with a lower allocation for ETH.”
“And given ETH’s supply situation (staking, smart contracts, HODL data), ETH should see positive price action upon the ETF launch (expected next few days/sometime this month),” Chhugani and Sapra said.
Kaiko’s Adam McCarthy
Options traders who have “crowded around” bullish options are now looking at gains, said Adam McCarthy, an analyst at Kaiko.
Even so, he cautioned that “Hong Kong ETFs didn’t see much demand and have had mixed days with several net outflow days already. No staking is a big factor too, and likely impacts demand further.”
He suggested watching Grayscale’s $9 billion ETHE product, “if it suffers large outflows, that would be significant for prices.”
Eric Johansson is DL News’ News Editor. Got a tip? Email him at eric@dlnews.com.
