Bitcoin
Will the approval of the Ethereum Spot-ETF cause a 30% drop in the price of Ether? Bitcoin and Other Crypto-Related Stocks Reacting Negatively in Premarket Amid Fears
Crypto-related actions including Coinbase Global (NASDAQ:COIN), MicroStrategy Inc. (NASDAQ:MSTR), Marathon Digital Holdings (NASDAQ:MARA) and others showed moderate reactions to Nate Geracipresident of The ETF Instituteanticipating spot approvals Ethereum (CRYPTO: ETH) this week. However, analysts are deliberate on how the ETF would impact the price of ETH.
What happened: Launch of spot Ether exchange-traded funds (ETFs) could lead to 30% drop in Ether price, warns André Kangfounder and partner of Capital of the Mechanism. Kang suggests that the price of Ether could fall from its current value of $3,410 to as low as $2,400, CoinTelegraph reported on Monday.
At the time of writing on Monday, Coinbase was trading 3.70% lower at $217.50 after closing at $225.86 on Friday, while Robinhood Markets, Inc. (NASDAQ:HOOD) was trading 1.97% lower at $21.85 after closing at $22.29 on Friday. Similarly, Marathon Digital was 5.15% lower from its close at $19.21 and was trading at $18.22 while MicroStrategy was trading 5.68% lower at $1,399.50 after Friday’s close -day of $1,483.76. Riot Platforms, Inc. (NASDAQ:RIOT) also reacted to the conversation by trading 3.87% lower at $9,180 during pre-market trading.
Kang expressed his skepticism about the potential benefits of an Ether ETF in a recent post. He stated: “How much upside would an ETH ETF provide? I would say not much,” predicting a price range of $2,400 to $3,000 following the ETF’s launch.
Kang predicts Ether spot ETFs will only attract 15% of spot flows Bitcoin (CRYPTO: BTC) ETFs flip. This is in line with the 10-20% range estimated by Bloomberg ETF analysts. Eric Balchunas It is James Seyffart.
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However, not everyone agrees with Kang’s predictions. Industry analyst Patrick Scott expects a directional movement similar to the performance of spot Bitcoin ETFs, but he does not foresee the price of Ether doubling. Meanwhile, the asset management company VanEck Projects that identify Ether ETFs could take Ether to $22,000 by 2030.
Kang also raised concerns about Ethereum’s future as a cash flow “machine,” suggesting that Ethereum could resemble an overpriced tech stock. He also noted that the removal of staking from proposed Ether spot ETFs could dissuade investors from converting their spot Ether into ETF form.
Why this matters: The launch of spot Ether ETFs has been a topic of discussion in the crypto world. Nate Geraci, president of the ETF Institute, had anticipated approvals for Ethereum ETFs in sight, potentially shaking up the cryptocurrency market.
In a post on X, formerly Twitter, Geraci predicted that spot ETH ETFs would be approved, stating: “I’m figuring this out as spot ETH ETFs will be approved this week… Just me.”
Geraci’s views were consistent with his prediction from two weeks ago, when he stated that he would be shocked if spot ETFs didn’t get the green light before the end of the month. “There is no reason for delay,” he had said.
This also follows a controversial policy shift that led to the SEC’s approval of spot Ethereum ETFs last month, a narrative that was called into question after President Joe Biden vetoed a bill that aimed to overturn SAB 121.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari