Will Ethereum break $5000 this month? How do major institutions and experts view it?

Original Title: Ethereum to $5,000? Nine experts on how the ETF approval will impact prices

Original author: Eric Johansson, DL News

Original Compilation: Ismay, BlockBeats

Editor’s note: With the approval of the spot Ethereum ETF in the United States, the market’s enthusiasm for Ethereum is high. Industry experts have predicted that Ethereum’s price will usher in a new round of pump. Analysts from institutions such as Galaxy, FRNT Financial, CCData, OKX, Consensys have expressed their opinions, believing that the demand from institutional investors will drive up Ethereum prices. However, they have also warned of potential market challenges and fluctuations. This article collects various perspectives to explore the future prospects of this important market trend.

Ethereum surged by more than 30% in May after the approval of ETF in the United States, reaching over $3800. Market observers now expect Ethereum to set a new high of over $5000 in early June. As the dust settles, the market is speculating on Ethereum’s next move.

Here are the experts’ opinions.

Galaxy

Galaxy’s CEO Mike Novogratz said that the ‘broad’ transformation in Washington has led to a change in the SEC’s attitude towards Ethereum ETF.

If the SEC’s change in attitude is politically motivated, “it will be a major change”, “if this is true, the price will be much higher than it is now.”

However, since he made the above remarks, President Joe Biden has followed through on his threat to veto the bipartisan pro-cryptocurrency bill.

FRNT Financial

David Brickell, International Distribution Manager at FRNT Financial, said that Bitcoin and Ethereum will reach a new all-time high by the end of June.

He said that the approval of the spot Ethereum ETF, a more positive economic outlook, and a series of cryptocurrency-friendly votes on Capitol Hill indicate that these two world-leading cryptocurrencies will enjoy strong tailwinds in the coming weeks.

“I wouldn’t be surprised to see Bitcoin reach $80,000 and Ethereum reach $5,000.”

CCData

CCData cryptocurrency data company’s research analyst Jacob Joseph not only expects Ethereum to hit a new record, but also believes that investors will pour $3.9 billion into the US spot Ethereum ETF in the first 100 days. He derived this figure from the performance of 10 spot Bitcoin ETFs in the first 100 days.

Nevertheless, he warned that Ethereum could face challenges from outflows of funds from the Grayscale Ethereum Trust, which could drag down market sentiment.

According to BitMEX research, since its launch in January, Grayscale Bitcoin Trust has seen outflows of more than $17.7 billion. These funds have mainly flowed into lower-cost funds.

OKX

Lennix Lai, Global Chief Business Officer of OKX, said that the Spot Ethereum ETF will trigger a new wave of institutional investor demand.

He said they could invest $500 million in Ethereum ETF in the first week. “This could be as important as, if not more important than, the approval of Bitcoin ETF.”

TzTok-Chad

The growing optimism in the industry has prompted traders to invest about 34 billion dollars in call options, betting that Ethereum will rise above $4000 by June 28th.

TzTok-Chad, the anonymous founder of decentralized options exchange Stryke, said that the positioning of the derivatives market indicates that many traders are even targeting prices above $5000.

However, he warned that the road to reaching a new record is not smooth, and some fluctuations are expected.

Consensys

Joe Lubin, the founder of Consensys and co-founder of Ethereum, said that there is expected to be a “flood-like” rise in demand for Ethereum, which could lead to supply shortages and pump up prices.

Lubin said that institutions that have already entered the Bitcoin ETF are likely to want to diversify their investment in the second approved ETF.

He said, ‘The natural and long-suppressed demand for purchasing Ethereum through ETFs will be very large, but the supply to meet this demand will be less than when the spot Bitcoin ETF was approved in January.’

Bernstein

Analysts Gautam Chhugani and Mahika Sapra of research firm Bernstein suggest not to expect Ethereum ETF inflows to reach the level of Bitcoin funds.

In their report on June 3, they stated that ETF represents an opportunity to leverage the suppressed demand from the same participants of Bitcoin ETF, which may result in a lower allocation to Ethereum.

“Given the supply situation of Ethereum (stake, smart contracts, hodling data), Ethereum is expected to see positive price performance when the ETF is launched (expected at some point in the next few days/this month),” said Chhugani and Sapra.

Kaiko

Analyst Adam McCarthy of Kaiko says traders around call options are now seeing profits.

Even so, he cautioned that “there is not much demand for ETFs in Hong Kong, and there have been several days of net outflows. The lack of stake is also an important factor that may further affect demand.”

He suggested following Grayscale’s $9 billion ETHE product, ‘If there is a large outflow of funds, it will have a significant impact on the price.’