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- Researchers are predicting a significant capital flow into spot Ethereum ETFs.
- Steno Research thinks spot Ethereum ETF inflows would reach $20 billion within one year.
- The firm thinks the inflow would push ETH’s price to $6,500 this year.
Spot Ethereum ETFs could attract a flood of capital in their first year, potentially driving Ether’s price to $6,500 by the end of 2024, according to research from Steno. The Denmark-based firm predicts a net inflow of $15 billion to $20 billion into these newly approved investment products, which could launch as early as next week.
Steno Research finds Ethereum to possess qualities that appeal to Wall Street; hence, the validation for its spot ETFs to attract $20 billion in the first year after its launch.
Steno Research’s senior analyst Mads Eberhardt stated the forecast accounts for the potential outflow from Grayscale’s Ethereum Trust (ETHE), adding that the expected inflow would drive ETH’s price higher relative to the dollar and Bitcoin.
It is worth noting that the SEC had in-principle approved spot Ethereum ETFs on May 23, 2024. The research firm believes the inflows will begin soon after regulators approve the subsequent S-1 filings, enabling the new products to begin trading. According to the firm, the S-1 approvals could happen as early as next week.
Furthermore, Steno expects the ETH/BTC ratio to strengthen to 0.065 later this year, due to the estimated spot Ethereum ETF inflows. The report highlighted that a smaller inflow into the spot Ethereum ETF would impact Ethereum more significantly than the spot Bitcoin ETF inflows’ impact on BTC. That is because of Ethereum’s lower market capitalization than Bitcoin.
Besides Steno Research, other firms have also predicted the potential inflow for the spot Ethereum ETF. Galaxy Research anticipates the spot Ether ETF could see a $5 billion net inflow in its first five months, while asset manager Bitwise predicts a net inflow of $15 billion in the first 18 months.
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