Steno Research Expects $15-20B Inflows into Ether Spot ETFs, Predicts $6,500 Price Target
Net inflows into spot Ether exchange-traded funds (ETFs) could reach an impressive $20 billion within the first year, according to a recent report by Steno Research.
The research firm said Ether possesses qualities that appeal to Wall Street investors, claiming that the crypto market’s pessimism surrounding the forthcoming launch of spot ETH ETFs may be unwarranted.
“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),” senior analyst Mads Eberhardt stated in the report.
Eberhardt believes that this substantial influx of capital will not only drive up the value of ether in dollar terms but also position it favorably in comparison to Bitcoin.
The report further predicts that ether could reach a minimum price of $6,500 by the end of this year, attributing this projection to the expected inflows into spot ETFs and other positive market factors.
The launch of spot ether ETFs in the U.S. is imminent following the recent approval of filings by issuers from the Securities and Exchange Commission (SEC).
Reports suggest that these new products could commence trading as early as next week once the S-1 filings receive final approval.
Steno Research indicates that if the projected inflows into spot Ether ETFs materialize, the ether/bitcoin ratio could strengthen to 0.065 by the end of the year.
The report highlights that due to lower market capitalization and liquidity compared to bitcoin, even a smaller inflow into ether ETFs would have a more significant impact on its value.
While Steno Research is optimistic about the outlook for spotEether ETF flows, other entities have different predictions.
Galaxy Research estimates $5
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