Ethereum

Bitcoin

The much anticipated launch of Ether spot ETFs draws closer, market analysts and investors are keenly speculating on its potential impact on prices. Estimating the precise inflows into <a href="https://news.todayq.com/mystery-ether-withdrawals-800k-eth-leaves-exchanges/" rel="noopener noreferrer nofollow">ETH ETFs</a> is challenging, but insights from industry experts give out a useful range. Expected inflows into the ETF 
Goldman Sachs had predicted that these ETFs could attract between $1 billion to $3 billion in net inflows by the end of the year. However, Eric Balchunas, Senior ETF Analyst at Bloomberg, had suggested the biggest altcoin could capture 15-20% of the inflows seen with Bitcoin (BTC) ETFs.&nbsp;
Meanwhile, Matt Hougan, CIO of Bitwise Invest, cames ahead to drop his estimates net inflows. He proposed that it could reach 25-50% of BTC ETF inflows within the first four months.&nbsp;
Grayscale’s research team forecasts ETH ETFs will see 25-30% of the demand recorded by BTC ETFs.
In order to gauge Ether’s potential price move, it’s needed to check BTC’s reaction to its own spot ETF. Market dynamics, primarily demand and supply, suggest that Bitcoin’s price surge can be linked to ETF inflows.&nbsp;
Assuming that 75% of Bitcoin’s recent price action is due to ETF inflows, a net inflow of approximately $13.86 billion has moved BTC by about 37.5%. This implies that every billion dollars in net inflows increased BTC’s price by 2.7%. Where can it go? 
Let’s consider the differences between Bitcoin and Ethereum but several factors must be adjusted.&nbsp;
BTC’s Fully Diluted Valuation (FDV) is roughly 3.15 times that of ETH. However, about 27% of its supply is staked, and ETH’s supply has been slightly deflationary since the merger.&nbsp;
Calculating these factors, it’s reasonable to assume that Ether is four times more reactive to inflows compared to BTC. This suggests that for every billion dollars in net inflows, ETH’s price could increase by 10.8%.
Experts suggest that by using these assumptions, there will be different price outcomes Ether by the end of 2024. In the Bear Case scenario ETH could reach $4,428, while in the base case, it could hit $5.290. However, if we talk about a bull case scenario then Ether could reach $6,730 by the end of this year.
Ethereum is trading at an average price of $3,773, at the press time. Its 24 hour trading volume is up 30% to stand at $13.26 billion.

Will Ether hit a new ATH in 2024? What to expect for ETFs?

Todayq News

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