VanEck: Ethereum Price to Hit $22,000 by 2030, Open Interest Jumps

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As a researcher with experience in the cryptocurrency market, I find VanEck’s bullish outlook on Ethereum (ETH) and their raised price target of $22,000 by 2030 to be an intriguing development. The imminent arrival of spot Ethereum ETFs in the US could indeed bring significant inflows and institutional investment into the asset class, driving up its price.

VanEck, a prominent US investment firm seeking approval for an Ethereum Exchange-Traded Fund (ETF), has upped its projection for Ethereum’s price by 2030 to $22,000. The bullish perspective is attributed to the imminent launch of a spot Ethereum ETF this year, according to VanEck’s declaration.

As an analyst at VanEck, I can share that we, along with other prominent Wall Street firms, have recently submitted applications to the Securities and Exchange Commission (SEC) for listing spot Ethereum exchange-traded funds (ETFs). Although the SEC has already approved the 19b-4 filings for most of the applicants, they are still reviewing our S-1 registrations. In our latest research note, my colleagues Matthew Sigel, Patrick Bush, and I expressed our perspectives on this development.

“It’s expected that ether ETFs may soon receive approval for trading on American stock markets. This significant step would enable financial advisors and institutional investors to securely invest in this distinctive asset through qualified custodians, and reap the benefits of ETFs, such as competitive pricing and high liquidity.”

According to K33 Research’s latest findings, I can anticipate that spot Ether Exchange Traded Funds (ETFs) could potentially attract investments worth $4.8 billion in their initial five months of operation. This surge in inflows may very well push the Ethereum price upward, possibly reaching new peak levels around $5,000.

Ethereum Network Growth

The report indicates that the Ethereum network is primed for continued growth in market dominance, drawing in not just conventional finance players but also a growing contingent of major tech corporations.

Based on its current dominance as a smart contract platform and assuming it continues to lead in this area, the report paints a realistic picture where token holders might reap around $66 billion in free cash flow. Consequently, this could bolster a valuation of approximately $2.2 trillion for the asset. Such a projection may ultimately result in a price point of $22,000 per coin by the year 2030.

The predicted price of Ethereum (ETH) being $22,000 serves as a baseline. However, prices could reach as high as $154,000 in a bullish scenario or drop to $360 in a bearish one. The authors describe Ethereum as a groundbreaking asset with limited comparisons in the traditional financial sector. They further liken it to “Digital Oil” due to its consumption during interactions on Ethereum’s platform.

Over the past four years, I’ve witnessed a staggering ninefold increase in the total number of Ethereum ecosystem users based on my personal research and data from Bitwise, the crypto ETF issuer. In the first quarter of 2020 alone, Ethereum and its scaling solutions Arbitrum and Polygon averaged approximately 250,000 daily active users, with the majority utilizing the Ethereum layer-1 mainnet.

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2024-06-06 13:51