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

With Ethereum surging 30% to $3,800 in May following U.S. ETF approvals, experts predict potential new highs of $5,000 as early as June, driven by institutional investments and market optimism.

Experts Predict Ethereum ETF Approval to Boost Prices Amid Market Optimism and Institutional Interest

Following U.S. ETF approvals that drove Ethereum up 30% to $3,800 in May, experts predict new highs of $5,000 as early as June, fueled by institutional investment and market optimism.

Galaxy’s Mike Novogratz

Galaxy Digital CEO Mike Novogratz told DL News that the SEC's game changed for an Ethereum ETF because of a "widespread" pivot in Washington.

If the SEC's change of heart was politically motivated, "that's a seismic shift," Novogratz said.

“If that's what actually happened, prices are going to be much higher than here."

However, since making those remarks, President Joe Biden has vetoed a pro-crypto measure that both parties supported, as promised.

FRNT Financial’s David Brickell

Bitcoin and Ethereum will hit all-time highs by the end of June, according to David Brickell, FRNT Financial's head of international distribution.

He told DL News that approvals for a spot Ethereum ETF, a more positive outlook on the economy, and a few crypto-friendly votes on Capitol Hill indicate strong tailwinds for the world's top two cryptocurrencies over the next few weeks.

“I wouldn't be surprised to see $80,000 and $5,000″ for Bitcoin and Ethereum, respectively, Brickell told DL News.

CCData’s Jacob Joseph

In addition to predicting a new high for Ethereum, research analyst at cryptocurrency data firm CCData Jacob Joseph predicted that $3.9 billion will pour into US spot Ethereum ETFs within the first 100 days of their debut, DL News reported.

He arrived at the sum by extrapolating the performance of the first 100 days of the ten-spot Bitcoin ETFs.

However, he warned that Ethereum could face challenges due to outflows from the Grayscale Ethereum Trust, which could impact market sentiment negatively.

According to BitMEX research, the Grayscale Bitcoin Trust has experienced inflows of over $17.7 billion since launching in January.

The capital has largely shifted to funds that charge lower fees.

OKX’s Lennix Lai

Spotting the Ethereum ETF will drive a fresh wave of interest from institutional investors, OKX's global chief cryptocurrency commercial officer Lennix Lai told DL News.

He predicted that $500 million would be poured into Ethereum ETFs in their first week.

“It's probably just as, if not more, important as the Bitcoin ETF approval," he said.

TzTok-Chad

A surge in industry optimism has seen traders buy up around $3.4 billion in purchasing calls, or bullish bets, on the expectation that Ethereum will cross $4,000 by June 28.

The positioning in the derivatives suggests that many traders are aiming for prices over $5,000, according to DL News' pseudonymous creator of decentralized options exchange Stryke, TzTok-Chad.

However, he cautioned that the move towards the new benchmark may not be clear-cut and that volatility should be expected.

Consensys’ Joe Lubin

Expect a “floodgate” of demand for Ether, which will likely create a supply shortage and drive prices higher, according to Joe Lubin, co-founder of ConsenSys and founder of the Ethereum cryptocurrency infrastructure company.

Institutions that learned about Bitcoin ETFs “will likely want to diversify into that second approved ETF,” Lubin told DL News.

“There's going to be a pretty large amount of natural, pent-up pressure to buy Ether” through ETFs, he said.

He cautioned that there will be less supply to meet the demand, unlike in January, when spot Bitcoin ETFs were approved.

Bernstein

Flows into Ethereum ETFs will pale in comparison to those seen in Bitcoin funds.

This is according to analysts Gautam Chhugani and Mahika Sapra of research firm Bernstein.

They wrote in a June 3 note that ETFs present an opportunity to capitalize on “pent-up demand from the same participants as the Bitcoin ETF, albeit with a lower allocation for ETH.”

“And given ETH's supply dynamics (staking, smart contracts, HODL data), ETH should see positive price action upon the ETF launch (expected next few days/sometime this month),” Chhugani and Sapra said.

Kaiko’s Adam McCarthy

Investors who “crowded around” favorable options are now focusing on the gains, according to Kaiko analyst Adam McCarthy.

He did, however, warn that “Hong Kong ETFs didn't see much demand and have had mixed days with several net outflow days already. No staking is a big factor too, and likely impacts demand further.”

He suggested keeping an eye on Grayscale's $9 billion ETHE product: “If it suffers