Ethereum ETFs to Launch Next Week: Experts Predict ETH Price Surge Beyond $5,000

• Ether spot ETFs launching next week could push ETH above $5,000, driven by zero supply and strong demand.
• Bitwise forecasts $15 billion net inflows for ETH spot ETFs within 18 months, potentially driving ETH to $6,500 by year-end.
• ETH’s market reaction may surpass BTC’s 25% surge due to lower inflation and 28% of ETH being staked, removing it from circulation.

Spot Ethereum (ETH) exchange-traded funds (ETFs) are expected to launch in the US next week. Bitwise predicts that this launch would likely push Ethereum’s price to new all-time highs of $5,000 or higher.By year’s end, Bitwise’s chief investment officer, Matt Hougan, anticipates fresh highs despite potentially unpredictable initial price activity. Early price swings will be impacted by the switch from the $11 billion Grayscale Ethereum Trust (ETHE) to an ETF. Hougan is optimistic about price hikes, though.

Anticipated Market Impact

Bitwise reports that Bitcoin (BTC) surged 25% after the launch of spot ETFs in the U.S. this January. Since October, Bitcoin has more than doubled due to the market anticipating ETF launches. Consequently, Ether’s market reaction could be even more substantial for three key reasons.

Firstly, Ether’s short-term inflation rate is 0%, compared to Bitcoin’s 1.7% at the time of its ETF launch. Secondly, ETH stakes are not forced to sell, unlike Bitcoin miners. Additionally, 28% of ETH is staked, effectively removing it from market circulation. This creates demand, meeting zero supply.

Bitwise forecasts that Ether spot ETFs will attract $15 billion in net inflows within their first 18 months. Steno Research supports this bullish outlook, predicting Ether could reach $6,500 by year-end. This projection includes expected ETF inflows and additional market tailwinds.

Eric Balchunas, a senior analyst at Bloomberg, suggests the SEC’s request for revised S-1 forms by July 16 hints at a launch around July 23. This expedited timeline fuels market optimism.

Broader Crypto Sector Growth

Institutional investor Tom Dunleavy anticipates capital inflows into Ethereum ETFs. He predicts around $10 billion in the first year, averaging nearly $1 billion per month. This positive trend aligns with the broader growth in the crypto sector. Recently, Ethereum generated $2.728 billion in blockchain revenue, far outpacing Bitcoin’s $1.302 billion. Hence, the momentum for ETH is strong within the expanding crypto market.

The expected launch of Ether spot ETFs marks a significant milestone for Ethereum. Besides, it underscores the broader growth and investor confidence in the cryptocurrency market. As these ETFs roll out, all eyes will be on Ethereum’s performance and the impact on its price and market position. This new phase in the crypto market could redefine investment strategies and market dynamics, significantly benefiting Ether and its stakeholders.