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Where Will Ethereum (ETH) Head Next? Analysts Weigh In on Post-ETF Price Targets

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Giuseppe Ciccomascolo
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Key Takeaways

  • Ethereum ETFs launched with over $1 billion in trading volume on the first and second days.
  • Initial enthusiasm led to significant activity, but Ethereum’s price declined shortly after.
  • Analysts predict substantial inflows into the ETFs, which could drive significant price increases for ETH.

Ethereum exchange-traded funds (ETFs) made a strong debut in the US market, generating nearly $2 billion in trading volume within the first two days. While initial investor enthusiasm was high, with billions in assets under management, Ether’s price has dropped by double digits since the launch.

Still, analysts predict substantial inflows into Ethereum ETFs, which could potentially drive ETH prices significantly higher in the coming months.

Ethereum ETFs Finally Launched

Ethereum ETFs have been on a roll, pulling in significant volumes. On their debut day, July 23, the funds traded over $1.05 billion. The momentum continued into the second day, with spot Ether ETFs generating approximately $951 million in cumulative trading volume on Wednesday, July 24.

In terms of market share, Grayscale’s Ethereum Trust (ETHE) led the pack  with around $500 million, accounting for roughly 52% of the total volume. BlackRock’s iShares Ethereum Trust (ETHA) followed closely, attracting over $250 million in investment, while Fidelity’s Ethereum Fund (FETH) secured $113 million in inflows.

Despite the strong trading volume, the newborn nine US spot Ethereum ETFs experienced a reversal of fortunes on their second day. After drawing in $107 million in inflows on their debut day and accumulating over $10 billion in assets under management (AUM), the ETFs saw $133 million in net outflows  on Wednesday.

What Analysts Predict For ETH Price

Within the first 15 minutes of their debut, ETH ETFs achieved a trading volume of $112 million, with Grayscale ETHE trading at $39.7 million, Bitwise ETHW at $25.5 million, BlackRock ETHA at $22.5 million, and Fidelity FETH at $15.2 million.

Despite the possibility of a short-term price drop following the ETF launch, analysts remain bullish  on Ethereum’s prospects, predicting substantial growth over the next six months. Wintermute estimates  that Ethereum ETFs could attract up to $4 billion in inflows over the next year, potentially driving ETH prices up by 24%. However, the competitiveness of these ETFs could be hindered by US regulators’ decision to reject requests to allow them to stake their crypto holdings.

Citi Bank  predicts  net inflows for Ethereum spot ETFs could reach $4.7 billion to $5.4 billion over six months. Meanwhile, Bitwise CIO Matt Hougan expects the ETFs to attract $15 billion in net inflows within the first 18 months. K33 Research  forecasts $3 billion to $4.8 billion in inflows within the first five months.

Bernstein anticipates the total market for Bitcoin and Ethereum ETFs to grow to $450 billion, with Ethereum prices potentially rising 75% to $6,600 following the ETF approval. Additionally, Standard Chartered analyst Geoffrey Kendrick predicts ETH could reach $8,000 by the end of 2024, attracting $15 billion to $45 billion in inflows.

ETH Performance Post-ETFs Debut

Despite the successful launch of the ETF, ETH has fallen by approximately 10% over the last 24 hours, with the overall crypto market experiencing a 3% decline. At the time of writing, Ethereum was trading at around $3,172.58, representing a 7.8% drop over the past day, according to data from CoinMarketCap .

Konstantin Shulga, CEO and co-founder of Finery Markets  noted that Ethereum trading volumes rose by 32% in the first half of 2024 compared to the same period in 2023 in the OTC market.

“Consequently, we can reasonably expect further market strengthening in response to the swift approval of the ETH ETF. However, it is essential to recognize that beyond the initial hype, business routines prevail,” he said.

“We observed a significant BTC rally following the launch of BTC ETFs. Anticipation for ETH, the second-largest digital asset, is high, especially in the current bullish market. Research indicates Ethereum’s higher sensitivity to global ETP flows compared to Bitcoin. However, we should remain patient and account for volatility and potentially inflated expectations,” Shulga added.

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Giuseppe Ciccomascolo

Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors. Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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