Ethereum ETF Potentially Pushes ETH Price to $6,000

Bittime - Ethereum's popularity continues to grow, especially with the launch of Ethereum ETF products. According to Katalin Tischhauser, Head of Investment Research at Sygnum Bank, if capital inflows into Ethereum ETFs have the same pattern as Bitcoin ETFs in the first few months, the price of Ethereum (ETH) could reach $6,000.

Ethereum ETF Capital Inflows

Tischhauser explained that the asset management scale (AUM) of a spot Ethereum ETF is expected to reach $10 billion in the first year of trading. This projection is based on similar predictions for Bitcoin ETFs, namely that capital inflows are expected to range between $30 billion to $50 billion in the first 12 months since launch.

Although Ethereum has less popularity compared to Bitcoin, Tischhauser estimates that capital inflows into Ethereum ETFs will account for approximately 15-35% of total inflows into Bitcoin ETFs. This means that in the first year, an Ethereum ETF could attract between $5 billion to $10 billion in capital.  

Advantages of Ethereum ETFs Compared to Bitcoin

Tischhauser also highlights some of the advantages of Ethereum ETFs compared to Bitcoin. As a smart contract platform, Ethereum is not only considered a valuable asset, but also has a wide variety of applications and use cases in the crypto industry. This makes Ethereum easier to understand for traditional institutional investors compared to the "digital gold" concept promoted by Bitcoin.

According to Tischhauser, Ethereum's value is driven more by the revenue and cash flow generated from its ecosystem, which makes it more relevant to traditional investors looking for an asset that can generate income, rather than simply a store of value like Bitcoin.

Ethereum Price Potential to Reach $6,000

Although the launch of an Ethereum ETF has attracted attention, the price of ETH has not shown any significant gains. Tischhauser argued that the market has not fully incorporated these positive factors into Ethereum prices due to relatively low initial expectations for capital inflows. 

However, Tischhauser also explained that if net inflows into Ethereum ETFs start to increase and accelerate, this could become a strong driving force for the price of ETH.

When capital inflows begin to increase, two main effects can occur. First, increased market sentiment. Second, the demand shock due to the limited liquid supply of ETH. Tischhauser noted that while this may take time, once capital inflows increase, the impact on Ethereum's price could be very significant.

Promising Ethereum ETF Trends

Although currently the market is still a little pessimistic about inflows into Ethereum ETFs, Tischhauser sees that any significant inflow into this ETF would have a greater impact on Ethereum compared to Bitcoin. 

This is supported by the fact that outside the fund HE SAID from Grayscale's AUM of $6.7 billion, eight new Ethereum ETFs have reached AUM of $1.5 billion in just the first 7 days of trading.

On July 31, 9 new Ethereum ETFs showed positive trends after 4 days of outflows, indicating that these products are starting to gain momentum. 

This shows the growing interest from investors, and if this trend continues, Ethereum ETFs could become one of the most influential crypto investment instruments in the future.

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