Will Ethereum ETF Spike Ethereum Price To $5K?

CBOE Set to Launch Five Spot Ethereum ETFs on July 23

Ethereum ETF is once again in the headlines as The Chicago Board Options Exchange (CBOE) said that five spot Ether ETFs will start trading on July 23.  This decision comes after the SEC granted its nod to the changes in the rules on May 23 to authorize the listing of these ETFs.

Nevertheless, the S-1 registration statement for each fund issuer still needs the final approval of the SEC. Currently, most ETF issuers have intentions of offering free or low-cost services once the trading starts to attract investors.

The five spot Ether ETFs to be launched are VanEck Ethereum ETF, 21Shares Core Ethereum ETF, Invesco Galaxy, Fidelity Ethereum Fund,  Ethereum ETF, and Franklin Ethereum ETF

Ethereum ETF Will Perform Better Than Bitcoin ETF: Bitwise CIO

Bitwise Chief Investment Officer Matt Hougan believes that spot Ethereum ETFs will have a greater impact on ETH's price than Bitcoin ETFs did for BTC. He cites three main reasons:

1. Ethereum's inflation rate is nearly zero due to the high usage of Ethereum-based applications.

2. Unlike Bitcoin miners, who need to sell BTC to cover high operational costs, ETH stakers face minimal direct costs.

3. About 28% of all ETH is staked and locked away, reducing the available supply.

Hougan expects that ETH could surpass $5,000 by the end of 2024. The spot Ether ETFs are set to launch on July 23.

Will Ethereum ETF Surge the Ethereum Price to 5K?

Previously experts predicted Bitcoin ETF would lead BTC to 100K. After the ETF was approved, Bitcoin failed to achieve the $100K mark. However, when Spot Bitcoin ETF was approved BTC was trading at the $47,641 level, and from there it faced a correction to the level of $38K. After this correction, it hit its all-time high of $73,750.07 more than 90% of gain.

If the same scenario happens with Ethereum it could easily break the $5000 level. At the time of writing, Ethereum was trading at $3,502 with a minor intraday loss of 0.10%. 

Last week the Ethereum price surged by almost 11.68% and in the last 6 months, it has grown by 42.66% according to Tradingview data which suggests a bullish momentum in the ETH price.

Moreover, according to the Tradingview technical summary out of 26 indicators, 3 are on the sell side, 9 are on the neutral side and 14 are on the buy side suggesting bullish momentum in ETH.

Conclusion

The forthcoming takeoff of five spot Ethereum ETFs on July 23 is anticipated to greatly impact ETH's price, potentially driving it above $5,000 by the end of 2024. Bitwise CIO Matt Hougan emphasizes Ethereum's low inflation rate, tiniest staking costs, and significant staked supply as key factors. Despite initial volatility, the overall outlook for ETH remains bullish, supported by recent price gains and positive technical indicators.

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