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Will Ethereum Spot ETF Approval Cause Ether Price to Drop 30%? Bitcoin and other cryptocurrency-related stocks react negatively in pre-market amid fears
Cryptocurrency-related stocks included Global Coinbase (NASDAQ:COIN), MicroStrategy Inc. (NASDAQ:MSTR), Digital marathon entries (NASDAQ:MARA) and others showed moderate reactions Nate Geracipresident of The ETF Instituteanticipating approvals for commercials Ethereum (CRYPTO: ETH) this week. However, analysts are aware of the ETF’s impact on the ETH price.
What happened: Launch of Ether spot exchange-traded funds (ETFs) could potentially lead to 30% drop in Ether price, warns Andrea Kangfounder and partner of Capital Mechanism. Kang suggests that the price of Ether could fall from its current value of $3,410 to as low as $2,400, CoinTelegraph reported Monday.
At the time of writing on Monday, Coinbase was trading 3.70% lower at $217.50 after closing at $225.86 on Friday, while Robinhood Markets, Inc. (NASDAQ:HOOD) traded 1.97% lower at $21.85 after closing at $22.29 on Friday. Similarly, Marathon Digital was down 5.15% from its close at $19.21 and was trading at $18.22, while MicroStrategy was trading down 5.68% at $1,399.50 after the close on Friday of $1,483.76. Riot Platforms, Inc (NASDAQ:RIOT) reacted to the conversation by trading 3.87% lower at $9,180 in pre-market trading.
Kang expressed his skepticism about the potential benefits of an Ether ETF in a recent post. He stated, “How much upside potential would an ETH ETF provide? I would say not much,” predicting a price range between $2,400 and $3,000 following the ETF’s launch.
Kang predicts spot Ether ETFs will only attract 15% of spot flows Bitcoin (CRYPTO: BTC) ETFs have seen. This is in line with the 10-20% range estimated by Bloomberg ETF analysts Eric Balchunas AND James Seyffart.
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However, not everyone agrees with Kang’s predictions. Industry analyst Patrick Scott expects a directional move similar to that of spot Bitcoin ETFs, but does not expect the price of Ether to double. Meanwhile, asset management companies VanEck projects identifying Ether ETFs could take Ether to $22,000 by 2030.
Kang also expressed concern about Ethereum’s future as a cash flow “machine,” suggesting that Ethereum could resemble an overpriced tech stock. He also noted that the removal of staking from proposed spot Ether ETFs could dissuade investors from converting their spot Ether into ETF form.
Because matter: The launch of Ether spot ETFs has been the subject of discussion in the cryptocurrency world. Nate Geraci, president of the ETF Institute, had previously anticipated the approval of spot Ethereum ETFs, which could shake up the cryptocurrency market.
In a post on
Geraci’s views were consistent with his predictions from two weeks ago, when he said he would be shocked if spot ETFs didn’t receive green signals before the end of the month. “There’s no reason to delay,” he had said.
This also follows a controversial policy shift that led to the SEC’s approval of Ethereum spot ETFs last month, a narrative that was called into question after President Joe Biden vetoed a bill to repeal SAB 121.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari