Analysts have different expectations for the launch of Ethereum ETF, with some expressing uncertainty.
With the launch of the ETF, the expected cryptocurrency fund Mechanism Capital founder Andrew Kang expects further decline in early July and predicts that ETH may fall to $2,400.
https://t.co/On2KWjAlLx
-Andrew Kang (@Rewkang)
June 23, 2024
Kang stated in a recent analysis:
Before the ETF launch, I expected the trading price of ETH to be between $3,000 and $3,800. Following its potential launch, my expectation for the trading price is between $2,400 and $3,000.
Kang believes that the initial inflow of funds into the ETF may be limited for two reasons.
First, unexpected endorsement
At the end of May, the U.S. Securities and Exchange Commission (SEC) had little time to convince a large number of ETH holders to switch to the ETF. Second, the ETF lacks the benefits investors receive from staking activities, which may alienate them.
Read more:
U.S. Securities and Exchange Commission ultimately suspends investigation into Ethereum
Therefore, Kang believes that the fund can only attract 30% of the capital flow.
The value of Bitcoin ETF in the first six months is estimated to be between $1.5 billion and $4.5 billion.
On the other hand, QCP analysts earlier anticipated that after the launch of the exchange-traded fund, Ethereum might reach $4,000 again.
