While some analysts are optimistic, with projections suggesting substantial inflows for ether, others are more cautious. For example, Standard Chartered has forecast that ether could reach $8,000 by the end of the year, anticipating that the ETFs could bring between $15 billion to $45 billion worth of ether into the market within the next twelve months. This would represent a significant increase from current trading levels, which hover just under $3,500. In contrast, major banks like JPMorgan and Citi have suggested that the inflows for ether might be about a third of what bitcoin achieved following its own ETF launches earlier this year.
The unique qualities of ether could influence investor demand in distinct ways. While bitcoin benefits from being the first cryptocurrency, ether offers additional functionalities such as staking, which allows investors to earn a yield by locking up their tokens — a feature unavailable to ETF investors. This difference could limit how much capital flows into ether compared to bitcoin. Despite varying forecasts, some speculate that ether’s price could appreciate even with lower inflows than bitcoin, partly due to its more constrained liquidity. However, others warn that initial market reactions may be muted as the transition from exchanges to ETF will not result in an instant rush of funds. Overall, while expectations for ether vary, investors remain hopeful regarding its future following the ETF launch.
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