Ethereum Price Will Hit $6,600 After Spot ETF Approval: Bernstein

According to Bernstein analysts Gautam Chhugani and Mahika Sapra, the price of Ethereum is set to jump to $6,600 following the anticipated approval of a spot ETF. These analysts expect a 75% surge, mirroring the rise in Bitcoin prices after the SEC approved a similar product in January.

Also Read: SEC Leans Towards Approving Spot Ethereum ETFs

Yesterday, Ethereum’s value spiked as optimism grew about the U.S. approving exchange-traded funds (ETFs) that track cryptocurrencies. The sudden shift to bullishness is debated, but the consensus among experts is clear. A regulatory nod for Ethereum ETFs would be a game-changer for the crypto market.

Experts Believe Ethereum Will Skyrocket

Asset manager VanEck has already submitted the first spot Ethereum ETF application to the SEC, with a decision expected by May 23. Mike Novogratz, CEO of Galaxy Digital, stated that a “widespread pivot” in Washington in the last 24 hours has dramatically changed the game.

If the SEC’s change of heart was politically motivated, that’s a seismic shift. If that’s what actually happened, prices are going to be much higher than here.

Novogratz

Joe Lubin, co-founder of Ethereum and founder of Consensys, predicts a “floodgate” of demand for Ether, leading to a supply crunch and higher prices. Lubin pointed out that institutions already exposed to Bitcoin ETFs will likely diversify into Ethereum once its ETF is approved.

There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether via ETFs, he added, noting that there will be less supply to meet this demand compared to the spot Bitcoin ETFs approved in January.

Ethereum Will Break All-Time High

Matt Hougan, Chief Investment Officer at Bitwise, noted in a blog post that the mainstreaming of Ethereum is set to push it to all-time highs. However, he attributed this catalyst not just to ETF optimism but also to legislative progress.

Also Read: FCA Greenlights Bitcoin and Ethereum ETPs

Hougan highlighted a bipartisan group of lawmakers passing the first pro-crypto legislation in Washington’s history, repealing the SEC’s SAB 121 policy, which imposed strict rules on crypto custody. He wrote:

This newfound support for crypto in DC — whether we get the spot Ethereum approval or not — is the latest proof point.

Timo Lehes, co-founder of blockchain platform Swarm, expects “significant inflows of capital” into Ethereum following ETF approval. He explained that once investors have allocated to Bitcoin, they also look to something else as part of portfolio diversification. Naturally, they will choose ETH as the next largest crypto asset. While these inflows might not match those of Bitcoin’s ETF launch, they will still significantly impact Ethereum’s price.

Ethereum Sustains Rally

Ethereum started a remarkable rally yesterday and is still sustaining it. At press time, it was worth $3,722. If the ETFs are approved, we could see an even more bullish response in the market. That would possibly drive Ethereum’s price way beyond its current range and test higher resistance levels at $4,000 or even $4,500.

Adam McCarthy, an analyst at Kaiko, observed that options traders who have clustered around bullish options are now seeing potential gains. However, he cautioned that investors should remain vigilant, because the lack of staking is a major factor that could affect demand. McCarthy suggested keeping an eye on Grayscale’s $9 billion ETHE product, stating,

“If it suffers large outflows, that would be significant for prices.”

 

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Cryptopolitan reporting by Jai Hamid