The cryptocurrency market is abuzz with the recent approvals of ethereum ETFs, sparking debate and speculation among investors and analysts alike.
Since the approval of the ethereum Spot ETF last week, ethereum has only seen a rise as high as $3,959 so far, before retreating to a current trading price of $3,757.
While reaching the $3,900 mark represents a significant increase, it falls short of the dramatic rise anticipated by many following the approval of spot ETFs by the US SEC.
Is the approval of the Spot ethereum ETF included in the price?
According to a recent ethereum-etfs-took-the-market-by-surprise-are-they-priced-in” target=”_blank” rel=”noopener nofollow”>reportExperts are divided on whether the impact of these approvals has been fully appreciated in the market.
Arthur Cheong of DeFiance Capital analyzed this and noted that the market has not yet adapted to this significant change and such a major change in market dynamics cannot be instantly reflected in the price.
GSR's Brian Rudick agrees, noting that the pattern seen with bitcoin spot ETFs could be repeated with eth, where major price movements followed both anticipation and actual spot ETF launches.
Despite ethereum's recent gains, the consensus among these market experts suggests that the full potential of the ETF approvals may not yet have been appreciated.
Rudick further revealed that the future price of eth will likely depend on inflows into the recently launched ethereum spot ETFs, similar to the trends seen with bitcoin. He predicts a possible “50-100% increase” in the price of ethereum from the beginning of the month, driven by strong inflows into these ETFs.
Meanwhile, Danny Chong of Tranchess believes that approval is only partially “included in the price”. He expects considerable volatility and possible “sideways trading” in the near term as the market adjusts to “fluctuating supply and demand dynamics.”
Chong emphasizes that eth spot ETFs could encourage greater institutional adoption and stabilize long-term ethereum prices.
Expert predicts market capitalization of $1.8 trillion after ETF approval
Meanwhile, Michael Nadeau, the founder of The DeFi Report, recently analyzed the potential effects of the approval of the ethereum spot ETF on its market trajectory.
Nadeau has outlined a valuation framework that suggests the entire crypto market could reach a market capitalization of $10 trillion. He believes eth is on the verge of surpassing Bloomberg's estimated 10-20% of net bitcoin inflows.
According to their projections, eth could reach a market capitalization of $1.8 trillion at the peak of this cycle, which, assuming supply remains constant, could push the price of eth to approximately $14,984.
For comparison, he notes that if bitcoin were to reach a market capitalization of $4 trillion, its price could skyrocket to $202,000.
Featured image created with DALL-E, TradingView chart
