Steno Research, an independent macroeconomics and crypto research firm, has forecasted a significant price surge for Ether (ETH) with the anticipated launch of spot Ether exchange-traded funds (ETFs). They predict that the trading of these ETFs, expected to begin in early July, will propel ETH to $6,500. Steno’s latest analysis suggests that Ether ETFs will attract up to $20 billion in inflows this year, outperforming expectations set by other leading analysts.
Optimistic Forecasts for Ether ETFs
Steno Research’s prediction stands in stark contrast to the bearish outlook of market analysts like Eric Balchunas and James Seyffart. These analysts have estimated that Ether ETFs would capture only 10% to 20% of the inflows that Bitcoin ETFs received this year, translating to $1.5 to $3 billion. However, Steno believes these estimates are significantly understated, anticipating that Ether ETFs will draw between $15 to $20 billion in their first year of trading.
Also Read: SEC Delays Ethereum ETF Launch Amid Comments
Potential Market Impact
Steno Research argues that this influx of funds will positively influence the broader crypto market. They also highlight the potential impact of outflows from the Ethereum Grayscale Trust, which could further boost demand for the new ETFs. This increased demand is expected to drive ETH prices to $6,500 and improve the ETH/BTC ratio from its current 0.05 to 0.065.
“This is largely because we believe the market shares the prevailing pessimistic view on Ethereum ETFs,” Steno stated, suggesting that widespread skepticism may lead to a more substantial market correction once the ETFs begin trading.
Anticipated ETF Launch
While there has not been an official announcement regarding the launch date of these spot Ether ETFs, Steno Research and other analysts estimate that trading will commence in early July. This expectation is based on the minimal comments received on the S-1 filings, which detail the structure and operation of the ETFs. The lack of regulatory pushback suggests that the launch is imminent.
