Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • TRADE
Crypto Flexs
Home»TRADING NEWS»Ethereum Faces 30% Drop After Spot ETF Launch
TRADING NEWS

Ethereum Faces 30% Drop After Spot ETF Launch

By Crypto FlexsAugust 21, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Ethereum Faces 30% Drop After Spot ETF Launch
Share
Facebook Twitter LinkedIn Pinterest Email

Potential Downturn for Ethereum

Ethereum, currently trading at $3,410, could crash to $2,400 with the launch of a spot ETH exchange-traded fund (ETF). Andrew Kang, co-founder and partner at Mechanism Capital, shares this bearish outlook, predicting a decline of around 30% from current prices.

Andrew Kang highlighted several factors that could limit the upside potential of an Ethereum ETF in a June 23 post on X (formerly Twitter), contrasting it with the strong institutional interest in Bitcoin.

Limited institutional interest and cash flow concerns

Mr. Kang argued that a recession was expected, making the following key arguments:

  • Minimum incentive: There is little incentive for investors to convert their spot ether into ETFs.
  • Weak cash flow: Ethereum’s network cash flow hasn’t been particularly impressive.
  • Institutional Interests: Unlike Bitcoin, Ethereum receives less attention from institutional investors.

“How high will the ETH ETF go? I would argue no,” Kang said. He expects the price of Ether to be between $2,400 and $3,000 after the ETF launch. This forecast represents a significant change from Ether’s previous highs, such as over $4,000 in March.

Comparison with Bitcoin ETFs

Kang compared the expected inflows into spot Ether ETFs with inflows into spot Bitcoin ETFs.

  • Spot Bitcoin ETF: We raised $5 billion in new funding in the first six months.
  • Spot Ether ETF: It is expected to attract only 15% of the flows seen in Bitcoin ETFs, with “actual” inflows coming in at around $840 million.

Elaborating on market sentiment, Kang said, “I think crypto native expectations are overblown and disconnected from the true preferences of TradeFi allocators, which means ETFs are more than priced in.”

Various analyst opinions and future forecasts

Not all analysts agree with the bearish outlook.

  • Patrick Scott (Dynamo DeFi): I expect Ethereum to move in a similar direction to the Bitcoin ETF, but I don’t expect Ethereum’s price to double.
  • Van Eck: Project to mine Ethereum ETF could push Ethereum price to $22,000 by 2030
Source: Andrew Kang X Post

Kang also pointed to challenges Ethereum faces in its investment pitch, describing it as a potentially “overvalued tech stock.” He highlighted the removal of staking from the proposed spot ETH ETF as another factor that could dampen investor interest. Despite some institutional moves toward tokenizing real assets on Ethereum, Kang remains skeptical about the impact on ETH’s price.

Market Dynamics and Future Scenarios

Kang’s prediction also extends to the ETH/BTC price ratio, which he believes could drop from 0.054 to as low as 0.035 over the next 12 months. However, he left room for optimism in this Eth news, suggesting that if Bitcoin rallies to $100,000, Ether could hit a new all-time high in the next 6-9 months.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Six high upside encryption coins of less than $ 20 are seen in 2025.

July 5, 2025

Valhalla Goes Today: FLOKI has been developed for 3 years and debuts the play MMORPG.

July 4, 2025

XRP rebounds are interested in APT miners cloud mining.

July 3, 2025
Add A Comment

Comments are closed.

Recent Posts

As Nano Labs begins to accumulate $ 1 billion, BNB gets a big supporter.

July 5, 2025

The Complete Guide to Crypto Website Listing Directories

July 5, 2025

Crypto Directories Listing That Will Transform Your Project’s Reach

July 5, 2025

The Ultimate Guide to Hiring a Crypto Marketing Agency

July 5, 2025

Six high upside encryption coins of less than $ 20 are seen in 2025.

July 5, 2025

Valhalla Goes Today: FLOKI has been developed for 3 years and debuts the play MMORPG.

July 4, 2025

The Open Platform Is First Unicorn In Web3 Ecosystem In Telegram At $1bn Valuation

July 3, 2025

The mindset of Retail Investors

July 3, 2025

Cooking.City Bringing Back Value Redistribution To Solana Fair Launches

July 3, 2025

XRP rebounds are interested in APT miners cloud mining.

July 3, 2025

The market will select US regulatory stable coins more than CBDCS every day of CBDCS every day.

July 3, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

As Nano Labs begins to accumulate $ 1 billion, BNB gets a big supporter.

July 5, 2025

The Complete Guide to Crypto Website Listing Directories

July 5, 2025

Crypto Directories Listing That Will Transform Your Project’s Reach

July 5, 2025
Most Popular

Transaction fees – P2PKH output integration

December 1, 2023

Bitdeer Launches Revolutionary 4nm SEAL01 Bitcoin Mining Chip

March 4, 2024

Encryption and stocks enter the ‘new trade war stage’ as the US-HINA tension increases.

April 17, 2025
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.