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Next week’s anticipated debut of spot ether (ETH) exchange-traded funds (ETFs) in the U.S. is set to propel Ethereum to unprecedented heights, with projections of surpassing $5,000, according to Bitwise. Initial fluctuations may arise as funds migrate from the $11 billion Grayscale Ethereum Trust, which is transitioning to an ETF. Nonetheless, Bitwise’s Chief Investment Officer, Matt Hougan, remains optimistic, foreseeing new peak prices by year-end, potentially even higher if market inflows exceed expectations.
Historical data supports this bullish outlook; following the introduction of Bitcoin spot ETFs in the U.S., Bitcoin’s value increased by 25% within months and over 110% since anticipation began the previous October. Ether ETFs are predicted to have an even more substantial impact due to Ethereum’s current zero percent inflation rate and the staking mechanism that keeps 28% of ETH out of circulation, ensuring robust demand meets limited supply.
The enthusiasm is echoed by Steno Research, predicting Ether could climb to at least $6,500 this year fueled by ETF inflows and other favorable factors. With a forecast of $15 billion in net inflows within the first 18 months, the launch of Ether ETFs marks a significant milestone that could reshape the cryptocurrency landscape.
