According to analysts, the price of ethereum will skyrocket if BlackRock's ethereum spot ETF gains SEC approval. This will result in more than 10x growth based on its current price.
Meanwhile, bitcoin ETF token pre-sales recently hit $2 million as analysts provide 10- to 100-fold price predictions.
Record institutional capital anticipated as key price driver
ethereum price saw a notable surge in November when the world's largest asset manager, BlackRock, doubled down on its crypto efforts and filed for an ethereum exchange-traded fund.
If approved, the ETF would list on Nasdaq, opening the door to a broad new audience that was previously deterred from purchasing eth for technical, security or liquidity reasons.
This would make cryptocurrencies a legitimate investment opportunity, even for traditional investors. As such, it is no surprise that the price of ethereum is rising early, currently at $2.09K, an increase of 15% in the last month.
However, some analysts are significantly optimistic about where ethereum could be headed in the next market cycle.
In a breakdown on TheStreet, prominent analyst crypto/markets/blackrock-etf-approval-ethereum-price-will-hit-28000″ data-wpel-link=”exclude” target=”_blank” rel=”nofollow noopener noreferrer”>austin arnold said“The world's largest asset manager, BlackRock, now backs both bitcoin and ethereum,” suggesting this is hugely important for the future of the asset.
It then considered BlackRock's assets under management (AUM), how much it can allocate to the eth ETF, and how this could affect the asset's market capitalization.
Arnold then discussed a bullish case following the ETF's approval, contemplating that ethereum could rise to highs of $41,000. However, he stated, “I don't see ethereum going that far.”
Instead, the analyst sees a more realistic prediction of $28,000 or $10,000.
“Whether it's $28,000, $45,000, $10,000, I'd be happy with anything, but I'm a long-term holder,” Arnold concluded.
One of the factors that stood out was the difference in the structure, tokenomics, and utility of bitcoin and ethereum. He explained: “One's digital gold aims to be a store of value. While ethereum is like digital oil, it is used to power a global decentralized supercomputer and create applications. Just as a car needs gasoline to run, ethereum is the gas that makes the system work.”
The analyst also referenced ethereum's burning mechanism, which makes the token deflationary by destroying a small portion of each transaction fee. Coupled with liquidity inflows into the ETF, Arnold believes this could significantly boost its price.
However, he understands that there is a limit to how far he can go in the next market cycle. “$10,000 eth is the most realistic scenario,” she said.
This represents a profit of less than 5 times its current price. While this is a significant return for those with large portfolios, it is unlikely to generate sufficient returns for those with limited financial resources.
An alternative with a lot of growth potential is bitcoin ETF Token, a trending new pre-sale that has raised more than $2.1 million in three weeks amid the BlackRock hype.
Bet-to-Win bitcoin ETF Token ICO Reaches $2 Million Milestone
ethereum-price-will-hit-28k-following-blackrock-etf-approval-as-btc-etf-token-presale-passes-2m” data-wpel-link=”exclude” target=”_blank” rel=”nofollow noopener noreferrer”>bitcoin ETF Token is a compelling new project that rewards holders based on key bitcoin ETF milestones.
The project has allocated 25% of its total supply to be burned as bitcoin ETFs hit five major targets, creating a sense of scarcity and fear of missing out (FOMO) when the hype is highest.
It also includes a 5% burn tax on transactions, which is reduced by 1% at each milestone. This incentivizes people to wait longer and ensures explosive price action after the project's IEO.
These factors make bitcoin ETF Token deflationary, introducing the scarcity principle into the project, which has been a key factor for bitcoin's parabolic price action since its launch in 2009.
Another interesting factor is its staking mechanism, which rewards its community and incentivizes users to lock their tokens, further limiting the available supply.
Holders can get a 118% staking APY, but they have to be quick because this decreases as more users stake their tokens.
The project has seen significant success lately, with top analysts providing hugely bullish predictions. Jacob Bury speculates that it will increase 10-fold after its release, while crypto boy He thinks it could be multiplied by 100.
ethereum-price-will-hit-28k-following-blackrock-etf-approval-as-btc-etf-token-presale-passes-2m” data-wpel-link=”exclude” target=”_blank” rel=”nofollow noopener noreferrer”>Visit the bitcoin ETF Token Pre-Sale
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