The first ETFs will launch on July 23. But what does this mean for the price of ETH? Analysts differ: some believe the price will rise significantly, others are more cautious. What can we expect?
ETH Sensitive Days
Will Cai of Kaiko, a cryptocurrency analysis firm, believes that the price of Ethereum could fluctuate widely in the coming days. This is due to the new ETFs. Previously, ETH products were not very popular. That is why everyone is now taking a closer look at the performance of the new ETFs.
Take a note about ETHE
An interesting development is the situation surrounding Grayscale’s Ethereum Trust (ETHE). In recent weeks, the price gap between ETHE and the actual value of ETH has narrowed. This could mean that smart traders bought ETHE on the cheap and are now poised to profit once it turns into an ETF. Will Kay of Kaiko points out Previous ETH products were not very popular. That is why everyone is now closely watching the performance of the new spot ETFs. Although we will not know how popular they will be for a few months, the price of ETH can fluctuate greatly in the early days due to the inflow and outflow of funds into these ETFs.
How much money goes into ETFs?
Experts have different ideas:
1. And I will leave you It is believed that between $3.2 billion and $4 billion will go to ETFs in the first year. They expect the price of ETH to rise by a maximum of 24% as a result.
2. ASXN is more positive. They believe between $800 million and $1.2 billion is coming in every month.
By comparison, Bitcoin ETFs are expected to reach around $32 billion in 2024.
Less impact than expected?
ASXN believes the ETHE sell-off will be less bad than some people think. They give two reasons:
1. The price difference between ETHE and the real value of ETH is getting closer.
2. Grayscale is starting a “mini ETH ETF,” which could help.
What does this mean for ETH holders?
The arrival of Ethereum ETFs is a big step. But it’s not certain whether the price will rise immediately. Experts disagree and a lot depends on how popular the ETFs are initially.
For those who love Ethereum, it’s an exciting time. We’ll see in the coming weeks whether ETFs have a direct impact on the price of ETH or not.
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