Analysts Say Ethereum's Performance Can Outperform Bitcoin, Here Are the Requirements

Previously, macroeconomic and crypto-focused insight agency Steno Research published its predictions on how the crypto market will behave with the upcoming Ethereum spot exchange-traded fund (ETF).

Quoting News.bitcoin.com, Tuesday (2/7/2024) Steno Research estimates that the Ethereum ETF will attract funds between USD 15 billion (Rp. 245.6 trillion) to USD 20 billion (Rp. 327.5 trillion) during the first year of trading.

The forecast includes possible outflows coming from the Ethereum Grayscale Trust, which positively impacts the broader crypto price movements in the market.

In the same way, this increase in demand will cause the price of ETH to rise to USD 6,500 (Rp. 106.4 million), plus other factors.

As a result, the ETH/BTC ratio, which is currently around 0.05, will rise to 0.065.

“This is largely because we believe the market has a prevailing pessimistic view of an Ethereum ETF,” Steno said.

While there has been no official announcement on when the ETH ETF will start trading, Steno Research and other analysts expect it to happen in the first days of July.

This is due to the relatively few comments received on the S-1 filing, the document in which the ETF issuer specifies how the instrument will work, suggesting that an Ether spot ETF launch may be imminent.

Steno’s prediction differs from other market analysts such as Eric Balchunas and James Seyffart, who estimate that ETH ETFs will only be able to capture 10% to 20% of the inflows achieved by Bitcoin this year.

This means that the Ethereum ETF will only record an inflow of USD 1.5 billion (Rp. 24.5 trillion) to USD 3 billion (Rp. 49.1 trillion), or not exceeding the Bitcoin ETF.