Title: Ethereum Price Could Skyrocket to $15,000 with Approval of Spot ETFs, Analysis Shows
Michael Nadeau, founder of The DeFi Report, has recently published a detailed analysis on the potential implications of the approval of spot Ethereum (ETH) Exchange-Traded Funds (ETFs) on the cryptocurrency’s price trajectory. This analysis comes in the wake of a significant regulatory approval from the US Securities and Exchange Commission (SEC) for eight leading financial entities, including Grayscale, Bitwise, BlackRock, and others.
The approval of these ETFs, granted under a collective omnibus order on May 23, paves the way for the final steps before these spot ETFs can start trading, pending S-1 registrations’ sign-offs.
Nadeau’s report draws upon projections by ETF experts at Bloomberg, suggesting that the inflows into Ethereum ETFs could range between 10-20% of those experienced by Bitcoin ETFs. He highlights key observations such as the lower institutional interest in ETH compared to BTC, the complexity of Ethereum, and the differences in futures ETF volume and spot trading volumes between the two cryptocurrencies.
The analysis also delves into the unique dynamics of Ethereum, including the lower operating expenses for validators compared to Bitcoin miners, which mitigates sell pressure on the asset. Nadeau points out that a significant portion of Ethereum is ‘soft locked’ in staking contracts and DeFi applications, reducing the available circulating supply.
Nadeau’s report also explores the concept of reflexivity in Ethereum’s market behavior, suggesting a cyclic effect where price action leads to more on-chain activity, ETH burned, and further price action.
In conclusion, Nadeau presents a valuation framework that anticipates the cryptocurrency market reaching a $10 trillion market cap, with ETH potentially commanding a market cap of $1.8 trillion at cycle peak, pricing ETH at approximately $14,984. This projection is based on the assumption of no change in supply.
At the time of writing, ETH was trading at $3,823, still around 29% away from its 2021 all-time high. The analysis suggests that with the approval of spot ETFs, Ethereum’s price could potentially skyrocket to $15,000, presenting a significant opportunity for investors.
Source: [NewsBTC](https://www.newsbtc.com/news/research-firm-ethereum-to-15000-etf-inflows/)
