Andrew Kang: Ethereum spot ETF has far less impact on the market than Bitcoin, and ETH has limited upside potential
Odaily2024/06/23 07:51
By:Odaily
Odaily News Andrew Kang, co-founder of Mechanism Capital, published an article on X analyzing the potential impact of
Ethereum spot ETFs on the
market. He said that
Bitcoin spot ETFs provide a channel for many new buyers to allocate Bitcoin in their portfolios, but the impact of Ethereum ETFs is far less clear. Unless Ethereum creates a convincing way to improve economic conditions, its price will not usher in considerable upside due to the approval of spot ETFs. Kang expects the flow of funds for Ethereum spot ETFs to be lower than the general market expectations, especially in the first few weeks: because the approval of the ETF was unexpected, the issuer did not have much time to convince large holders to convert their ETH to ETFs; on the other hand, it is less attractive for holders to convert ETH because they need to give up staking or use ETH as a DeFi collateral income (Note: the staking rate is only 25%). He further added that at a certain price, Ethereum will still be considered valuable. When Bitcoin rises in the future, it will be pulled up to some extent. Before the ETF is launched, ETH is expected to trade between $3,000 and $3,800; after the ETF is launched, the expectation is $2,400 to $3,000. However, if BTC reaches $100,000 by the end of Q4/Q1 2025, then this may lead ETH to a new all-time high, but
ETH/BTC will fall further and be between 0.035 and 0.06 in the next year.
0
0
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Stake to earn
CEC, QTLX, GDV and other popular new coins are in hot progress!
Stake now!
You may also like
US ‘far behind’ on crypto, election no quick fix — Ripple APAC boss
Cointelegraph•2024/09/20 08:45
Judges quiz CFTC, Kalshi over US election markets offering
Cointelegraph•2024/09/20 08:45
Deep Dive | September 20th
All the latest updates from the Swell ecosystem, including Swell L2 development and the launch of swBTC.
Swell Network Blog•2024/09/20 07:54
JASMY Chart Sets Up For Significant Retest That Could Launch the Altcoin Towards a Parabolic Price Pump
Cryptonewsland•2024/09/20 07:41
Trending news
MoreCrypto prices
MoreBitcoin
BTC
$63,330.03
+2.23%
Ethereum
ETH
$2,547.97
+4.62%
Tether USDt
USDT
$1
+0.00%
BNB
BNB
$571.29
+2.96%
Solana
SOL
$151.14
+9.04%
USDC
USDC
$1
+0.01%
XRP
XRP
$0.5890
+0.99%
Dogecoin
DOGE
$0.1064
+1.98%
TRON
TRX
$0.1520
+1.23%
Cardano
ADA
$0.3587
+3.25%
Bitget pre-market
Buy or sell coins before they are listed, including HMSTR, CATI, OGC, EIGEN, and more.
Trade now
Not a Bitgetter yet?Sign up now to embark on a journey into the crypto world!
Sign up now