Ether Spot ETF Inflows Will Push ETH to Beyond $5K: Bitwise
The launch of spot ether (ETH) exchange-traded funds (ETFs) in the U.S. is expected to push the price of the cryptocurrency to all-time highs above $5,000, according to Bitwise. The increase may not be immediate due to money potentially flowing out of the $11 billion Grayscale Ethereum Trust (ETHE) after it converts to an ETF. However, Bitwise is confident that new highs will be reached by year-end. Bitcoin has risen about 25% since the launch of spot ETFs in the U.S. in January, and over 110% since the market began pricing in a potential launch in October last year. Bitwise expects ether spot ETFs to have a larger impact than bitcoin due to three structural reasons: Ether’s short-term inflation rate is 0%, ETH stakers don’t have to sell, and 28% of ETH is staked and off the market. The ether spot ETFs are expected to attract $15 billion of net inflows in their first 18 months of trading.
