Steno Research, an independent research firm specializing in macroeconomics, geopolitics, and cryptocurrencies, has made a bold prediction regarding the upcoming spot ether exchange-traded funds (ETFs). According to Steno’s latest post, these ETFs will have a much stronger performance than what leading analysts have forecasted, potentially attracting up to $20 billion in inflows this year and driving the price of ether (ETH) to $6,500.
In contrast to market analysts like Eric Balchunas and James Seyffart, who have predicted that ether ETFs will only capture a small percentage of the inflows seen by their bitcoin counterparts, Steno Research believes these estimations are far too conservative. They anticipate that ether ETFs will generate inflows ranging from $15 to $20 billion in their first year of trading, even considering the potential outflows from the Ethereum Grayscale Trust. This influx of funds is expected to have a positive impact on the broader crypto market.
As a result of the increased demand, Steno Research expects ETH prices to reach $6,500, driven by various factors. Additionally, the ETH/BTC ratio, currently standing at around 0.05, is predicted to rise to 0.065. Steno Research attributes this projection to the prevailing pessimistic sentiment surrounding Ethereum ETFs.
While there has been no official announcement regarding the exact start date of these ETFs’ trading, Steno Research and other analysts estimate that it will likely begin in early July. This assumption is based on the limited comments received on the S-1 filings, which outline the operational details of these instruments, suggesting that the launch of spot ether ETFs could be imminent.
What are your thoughts on Steno Research’s projections for spot ether ETFs and their potential impact on the price of ether and the broader cryptocurrency market? Share your opinions in the comments section below.
