Expectations for the launch of Ethereum ETF are mixed among analysts, with some expressing uncertainty.
With the potential launch of the ETF expected to begin in early July, Andrew Kang, founder of the crypto fund Mechanism Capital, expects further declines, predicting that ETH could fall to $2,400.
https://t.co/On2KWjAlLx
– Andrew Kang (@Rewkang) June 23, 2024
In a recent analysis, Kang stated:
Before the ETF launch, I expect ETH to trade between $3,000 and $3,800. After [its potential launch], my expectations are for [trading between] $2,400 to $3,000.
Kang believes that initial flows to the ETF may be limited for two main reasons.
First, the unexpected approval by the SEC at the end of May left little time to persuade large ETH holders to move to the ETF. Second, ETFs lack the benefits that investors receive from staking activities, which may distance them.
Read more:
The US Securities and Exchange Commission ultimately suspends its investigation into Ethereum
As a result, Kang argues that the fund may attract only 30% of the flows observed in Bitcoin ETFs in the first six months, approximately $1.5 to $4.5 billion.
On the other hand, QCP analysts previously anticipated that Ethereum could reach $4,000 again after the launch of the exchange-traded fund.
