Ethereum

Patrick

when

Spot

BlackRock

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/andrew-kang-warns-about-potential-ethereum-price-drop-due-to-spot-etfs/" data-wpel-link="internal">Andrew Kang Warns About Potential Ethereum Price Drop Due to Spot ETFs</a> 
Mechanism Capital’s founder and partner Andrew Kang warned about the potential impact of the upcoming spot <a href="https://en.coin-turk.com/uk-treasury-proposes-excluding-cryptocurrencies-and-derivatives-from-the-secured-digital-securities-zone/" data-wpel-link="internal">Ethereum</a> exchange-traded funds (ETFs) approval in the US on the price of the altcoin king Ethereum (ETH). Kang believes that unless Ethereum develops a compelling way to improve its economic model, the launch of these ETFs could lead to a significant drop in ETH’s price, resulting in a “Sell The <a href="https://newslinker.co" target="_blank" rel="noopener" data-wpel-link="exclude">News</a>” scenario upon final approval. 
<h2 style="text-align: justify" id="strong-major-crash-prediction-for-eth-strong">Major Crash Prediction for ETH</h2> 
Currently, ETH is trading around $3,400. Kang predicts that ETH could drop to as low as $2,400 following the launch of spot Ethereum ETFs in the US. This corresponds to a roughly 30% decline from current prices. This prediction is based on the assessment that ETH has seen less institutional interest compared to Bitcoin (BTC) and that there is little incentive to turn to spot Ethereum ETFs. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-364486" src="https://coin-turk.com/wp-content/uploads/2024/06/Altcoin-Ethereum-ETH.webp" alt="" width="638" height="549"> 
Kang expressed his views in an article dated June 23, where he argued that the upside potential of spot Ethereum ETFs is limited. He expects ETH’s price to fluctuate between $2,400 and $3,000 after the launch of spot ETFs. This indicates a significant drop for ETH, which had previously surged above $4,000 in March when Bitcoin reached its all-time high and just before the US Securities and Exchange Commission (SEC) approved spot Ethereum ETFs. 
Furthermore, Kang estimates that the expected inflows into spot Ethereum ETFs will be much smaller compared to spot Bitcoin ETFs. The expert predicts that these ETFs will attract only 15% of the flows seen by spot Bitcoin ETFs. Notably, spot Bitcoin ETFs saw $5 billion in new fund inflows in the first six months following their launch, excluding conversions from spot form. In contrast, he expects spot Ethereum ETFs to attract around $840 million in the same period. 
Kang emphasized that the crypto community’s expectations regarding spot Ethereum ETFs are overly optimistic and not aligned with the actual preferences in the traditional finance world. He added that the expected benefits of the ETF are already priced into ETH’s current value. 
The future of Ethereum as a cash flow generator looked more promising during the decentralized finance (DeFi) and NFT hype. According to Kang, this momentum has not continued and has faded, making ETH currently resemble an overvalued <a target="_blank" rel="noopener">technology</a> stock. With annual revenue of $1.5 billion and a price-to-sales ratio of 300x, along with post-inflation negative earnings, analysts may find it challenging to justify the altcoin king’s price to traditional <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">investors</a>. 
Additionally, the removal of the staking option from the spot Ethereum ETFs submitted to the SEC could deter investors from turning to spot ETFs, according to the expert. Although institutions like BlackRock are exploring real-world asset tokenization on Ethereum, the expert remains skeptical about its immediate impact on ETH’s price. 
Kang also added that the ETH/BTC trading pair could drop from the current 0.054 level to 0.035 within the next year. However, he also noted that Bitcoin rising to $100,000 within the next six to nine months could push ETH to its all-time high. 
<h2 style="text-align: justify" id="strong-positive-outlook-on-etfs-also-exists-strong">Positive Outlook on ETFs Also Exists</h2> 
On the other hand, there are those with a positive outlook despite Kang’s negative perspective. Industry analyst Patrick Scott, also known as Dynamo DeFi, expects a similar directional movement to spot Bitcoin ETFs. However, Scott does not expect ETH’s price to double under the influence of spot ETFs. 
Moreover, asset management company VanEck holds a more optimistic view and predicts that spot Ethereum ETFs could help the altcoin king’s price reach $22,000 by 2030. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/andrew-kang-warns-about-potential-ethereum-price-drop-due-to-spot-etfs/" data-wpel-link="internal">Andrew Kang Warns About Potential Ethereum Price Drop Due to Spot ETFs</a></h5>

Andrew Kang Warns About Potential Ethereum Price Drop Due to Spot ETFs

目次

COINTURK NEWS

2024年6月24日公開の他の記事

Bridging the Gap Between Bitcoin and CBDCs for Improved Functionality

Ark Invest CEO Says She Will Vote for Trump

Watch Your Wallet Grow: BlockDAG Set to Skyrocket to $10 by 2025 After a Stellar XRP Win

Bitget Wallet launches TON network integration for dApps

PEPE price prediction: Is another 13% decline on the way?

MoonBag Takes The Crown For The Top Crypto Presale In June 2024, Offering Lucrative Rewards Leavi...

ニュースレターを購読して暗号資産の最新情報を毎日入手！