Will Ethereum price break $5000 in June? What do institutional analysts think?

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

Original author: Eric Johansson, DL News

Original translation: 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 the price of Ethereum will usher in a new round of pump. Analysts from institutions such as Galaxy, FRNT Financial, CCData, OKX, and Consensys have expressed their views, believing that the demand from institutional investors will drive the price of Ethereum higher. However, they have also warned of potential market challenges and fluctuation. This article gathers opinions from all parties to explore the future prospects of this important market trend.

After the approval of the ETF by the United States, Ethereum soared by more than 30% in May, reaching $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 opinions of the experts.

Galaxy

Galaxy’s CEO Mike Novogratz said the “broad” shift in Washington has caused the SEC to change its approach to Ethereum ETF.

If the SEC’s change of attitude is driven by political motives, “it would be a major shift”, “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 made good on his threat to veto the bipartisan-supported pro-cryptocurrency bill.

FRNT Financial

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

He said that the approval of the Spot Ethereum ETF, more positive economic prospects, and a series of crypto-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’s research analyst Jacob Joseph not only predicts that Ethereum will set a new record, but also believes that investors will invest $3.9 billion in the first 100 days of the launch of the Ethereum ETF in the United States spot market. He calculated this number based on the performance of the top 10 spot Bitcoin ETFs in the first 100 days.

However, he warned that Ethereum could face challenges from the outflow of funds from the Grayscale Ethereum Trust, which could weigh on market sentiment.

According to BitMEX research, since its launch in January, the Grayscale Bitcoin Trust has seen over 17.7 billion USD outflows, with the funds mainly flowing into lower-cost funds.

OKX

OKX’s Global Chief Commercial Officer Lennix Lai said that the spot Ethereum ETF will trigger a new wave of institutional investor demand.

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

TzTok-Chad

The rise in industry optimism has prompted traders to invest around $3.4 billion in call options, betting that Ethereum will exceed $4,000 before June 28th.

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

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

Consensys

Joe Lubin, founder of Consensys and co-founder of the Ethereum, said a “flood” of demand for Ethereum is expected to rise, which could lead to tight supply and push prices up pump.

Lubin said those already involved in Bitcoin ETFs are “likely to want to longest their investments in a second approved ETF.”

“The natural and pent-up demand for buying Ethereum through ETF will be very large, but there will be less supply to meet that demand than it was when the Spot Bitcoin ETF was approved in January,” he said.

Bernstein

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

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

“Given the supply of Ethereum (stake, smart contracts, holding 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).” Chhugani and Sapra said.

Kaiko

Kaiko analyst Adam McCarthy said that traders around call options are now seeing profits.

However, he warned that ‘Hong Kong’s ETF has not seen much demand and has experienced several days of net outflows. The lack of stake is also an important factor that could further affect demand.’

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

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