Bitrabo Editorial
The recent approvals of Ethereum ETFs have sparked discussions and debates within the crypto market, captivating the attention of investors and analysts.
Following the spot Ethereum ETF approval, Ethereum saw a surge to $3,959 before settling at its current trading price of $3,757, falling short of the expected dramatic increase.
While the $3,900 milestone marked a significant rise, experts are divided on whether the impact of these approvals has been fully factored into the market.
Evaluating the Impact of Spot Ethereum ETF Approval
Experts offer varying opinions on whether the market has fully priced in the approval of Ethereum ETFs.
Arthur Cheong and Brian Rudick suggest that the market is yet to fully adjust to this major development and anticipate potential significant price movements following the ETF launches.
Despite recent gains, experts agree that the full potential of the ETF approvals may not have been completely reflected in Ethereum’s price.
Rudick predicts a substantial price increase driven by strong inflows into the newly launched spot Ethereum ETFs, similar to observed trends with Bitcoin.
On the other hand, Danny Chong believes that while partially factored in, there may be considerable volatility and sideways trading in the short term due to fluctuating demand and supply dynamics.
Chong predicts increased institutional adoption and more stabilized long-term prices for Ethereum with the ETFs.
Expert Outlook on Market Cap Post-ETF Approval
Michael Nadeau, from The DeFi Report, has projected potential effects of Ethereum’s spot ETF approval on its market outlook.
Nadeau’s valuation framework suggests a $10 trillion market cap for the entire crypto market, foreseeing ETH surpassing Bloomberg’s projections of Bitcoin’s net inflows.
He envisions a $1.8 trillion market cap for ETH at the cycle’s peak, potentially driving ETH’s price to around $14,984, assuming the supply remains constant.
In a comparative analysis, Nadeau highlights that if Bitcoin reaches a $4 trillion market cap, its price could surge to $202,000.
Image Source: DALL-E, TradingView