Ethereum ETFs Witness Stellar Start As Trading Soars; Analyst Sees ETH’s Price Reaching $8,000 In Q4
July 23 2024 - 12:21PM
NEWSBTC
Ethereum ETFs (exchange-traded funds) began trading on Tuesday,
generating significant volume within the first 2 hours of trading.
Interestingly, the Ethereum ETFs ranked among the top 1% regarding
ETF volume. Related Reading: Analyst Says Solana Price Will
Surge 1,000% To $1,800, Here’s When Ethereum ETFs Surpass
Traditional Launch Volumes According to Bloomberg ETF expert Eric
Balchunas, the ETH ETFs traded $361 million in the first 90 minutes
on launch day, surpassing the typical volume seen at the launch of
traditional ETFs. Blachunas said: Here’s where we at after 90
minutes. $361m total. As a group that number would rank them about
15th overall in ETF volume (about what $TLT and $EEM trade), which
is Top 1%. But again compared to a normal ETF launch, which rarely
see more than $1m on Day One, all of them have cleared that number
and then some. Matthew Sigel, head of digital asset research at
asset manager VanEck, highlighted the significance of these figures
in the first hours of trading, noting that Ethereum ETFs saw more
than 50% of trading volume compared to Bitcoin’s $610 million on
day one, indicating strong investor interest in Ethereum. However,
how these numbers will fare at the close remains to be seen.
Bitcoin ETFs saw $4.6 billion in volume on their first day of
trading in January, which may indicate the future performance of
these newly approved index funds for the second-largest
cryptocurrency on the market. ETH’s Price Targets Soar Crypto
analyst Doctor Profit shared a report highlighting a potentially
massive parabolic move for Ethereum’s price this year in the wake
of the expected inflows in the new Ethereum ETF market. While
some anticipate a correction due to the “sell the news” phenomenon,
Doctor Profit argues that the market has already factored in the
ETF launch but has yet to consider the significant inflows of USD
that will flood into the Ethereum ETFs. With Ethereum’s
market cap being three times smaller than Bitcoin’s, Doctor Profit
believes that every dollar invested in ETH is expected to have
three times the price impact compared to Bitcoin, positioning
Ethereum favorably for substantial price gains. Furthermore, the
analyst contends that while Ethereum’s Grayscale ETH Fund sell
pressure is comparable to the Bitcoin ETF launch, the impact is
expected to be less severe. Related Reading: Helium (HNT)
Rockets In Value With 41% Rally – Here’s Why Looking ahead, Doctor
Profit has set expected price targets for Ethereum in the coming
months, including a potential target between $4,500 and $5,500 by
Q3 2024, indicating steady but modest growth. Moving into Q4
2024 and Q1 2025, the price range is expected to expand from $5,500
to $8,000. However, it is in Q2 2025 that Ethereum is expected to
significantly jump, with price targets ranging from $8,000 to
$14,000. At the time of writing, ETH is trading at $3,444,
showing sideways movement with no significant change from
yesterday’s price, despite the hype surrounding the launch of the
ETF market. Featured image from DALL-E, chart from
TradingView.com
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