Steno Research projects that spot Ether exchange-traded funds (ETFs) could attract inflows of up to $20 billion in their first year, defying the crypto market’s skepticism. Despite anticipated outflows from the Grayscale Ethereum Trust (ETHE), senior analyst Mads Eberhardt believes that Ether’s appeal to Wall Street investors will drive significant capital into the market. This influx of capital is expected to not only increase Ether’s value in dollar terms but also position it favorably against Bitcoin. The report also predicts that Ether could reach a minimum price of $6,500 by the end of the year, thanks to the expected inflows into spot ETFs and other positive market factors. The launch of spot Ether ETFs in the US is imminent following recent SEC filings. Steno Research suggests that if the projected inflows materialize, the ether/bitcoin ratio could strengthen to 0.065 by year-end. While Steno Research is optimistic, other entities have different predictions. Galaxy Research estimates $5 billion of net inflows into spot Ether ETFs within the first five months, while Bitwise Asset Manager anticipates $15 billion within the first 18 months. On the other hand, Andrew Kang of Mechanism Capital expects a significant drop in Ether’s price to as low as $2,400 following the ETF launch, citing less institutional interest compared to Bitcoin. Nevertheless, several prominent asset managers have submitted revised proposals for Ethereum ETFs to the SEC, including VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity. These proposals aim to provide updated information on their respective Ethereum funds, with VanEck disclosing a management fee of 0.20%, in line with competitors.
