Steno Research Forecasts 1520 Billion Inflows into Ether Spot ETFs Anticipates 6500 Price Target

Steno Research Forecasts $15-20 Billion Inflows into Ether Spot ETFs, Targets $6,500 Price


Ruholamin Haqshanas
Last updated:
June 28, 2024, 05:55 EDT
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2 min read


According to a recent report by Steno Research, net inflows into spot Ether exchange-traded funds (ETFs) could potentially surge to $20 billion within their inaugural year.
The research firm highlighted Ether’s appeal to Wall Street investors, countering market skepticism surrounding the imminent launch of spot ETH ETFs.
“We maintain our forecast of net inflows ranging from $15 billion to $20 billion over the first 12 months, even factoring in outflows from the Grayscale Ethereum Trust (ETHE),” stated senior analyst Mads Eberhardt in the report.
Eberhardt predicts that this significant capital influx will not only drive Ether’s dollar value but also enhance its competitive stance against Bitcoin.
Ether’s Potential to Reach $6,500 Post-ETF Launch
The report also forecasts Ether potentially hitting a minimum price of $6,500 by year-end, attributing this outlook to anticipated ETF inflows and positive market dynamics.
The launch of spot Ether ETFs in the U.S. is imminent following recent SEC approvals of issuer filings.
Reports indicate these new products could begin trading as early as next week upon final approval of S-1 filings.
Steno Research suggests that if projected inflows into spot Ether ETFs materialize, the ether/bitcoin ratio could strengthen to 0.065 by year-end.
The report underscores that due to Ether’s lower market capitalization and liquidity compared to Bitcoin, even modest ETF inflows could exert a notable impact on its valuation.
While Steno Research expresses optimism about spot Ether ETF prospects, other forecasts diverge.
Galaxy Research estimates $5 billion in net inflows into spot Ether ETFs within the initial five months, whereas Bitwise Asset Management projects $15 billion within the first 18 months.
Potential Decline in Ether to $2,400
Conversely, Andrew Kang, founder and partner at Mechanism Capital, anticipates Ether’s price potentially plummeting to as low as $2,400 following spot ETF launches.
Kang cites Ether’s lesser institutional interest compared to Bitcoin and limited incentives for converting spot Ether into ETF vehicles.
In terms of flows relative to spot Bitcoin ETFs, Kang expects spot Ether ETFs to capture approximately 15% of the flows seen by their Bitcoin counterparts.
This estimation aligns with the projections of Bloomberg ETF analysts Eric Balchunas and James Seyffart, who suggest spot Ether ETFs may attract between 10% to 20% of total flows.
Significantly, several prominent asset managers have submitted revised Ethereum ETF proposals to the SEC.
According to Eric Balchunas of Bloomberg, filings by VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity aim to update information on their respective Ethereum funds.
VanEck’s filing disclosed a management fee of 0.20% for its Ethereum fund, similar to competitors like Franklin Templeton, which charges a 0.19% management fee.
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