Ethereum Price Could Drop 30% After Launch of ETH Spot ETF

Todaysgist.com, Jakarta – The price of Ethereum (ETH) could fall to as low as USD 2,400 after the launch of a spot Ethereum ETF. This was revealed by the founder and partner at the crypto-focused venture capital firm, Mechanism Capital, Andrew Kang.

Based on CoinGecko data, Ether is currently trading at around USD 3,410 per coin. A drop to USD 2,400 means a drop of almost 30% from the current price.

In a June 23 post on social media platform X, Kang said that, unlike Bitcoin, Ether has attracted little institutional interest. There is little incentive to convert spot Ether into ETF form, and the network's cash flow is not particularly impressive.

“How much profit does an ETH ETF provide? “I won't argue much,” said Kang, quoted from cointelegraph, Monday (24/6/2024).

“After the launch of the ETF, my expectation is USD 2,400 to USD 3,000.” he added.

This price could be a significant setback for the asset, considering that Ether had reached over USD 4,000 in March when Bitcoin hit a new all-time high.

It almost reached the same level a few days before the SEC approved the Ether ETF.

Kang noted that only USD 5 billion of new funds will go into the Ether ETF, excluding funds converted from spot, flowing into the spot Bitcoin ETF in the first six months.

Extrapolating this data to Ethereum shows that the Ether ETF received USD 840 million in “actual” inflows in the same time frame.

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