TLDR:
- Crypto VC Andrew Kang predicts a drop in ETH price to $2,400 post spot ETF launch
- He compares the impact of spot ETH ETFs to spot BTC ETFs and suggests that the inflows for ETH ETFs might be lower
In a recent article on the social media platform X, crypto VC Andrew Kang shared his insights on the potential impact of spot Ethereum (ETH) ETFs, set to launch in the U.S. Kang, known for his role as the co-founder and partner of Mechanism Capital, predicted that the launch of spot ETH ETFs might lead to a drop in ETH price to $2,400 post-launch.
Kang compared the impact of spot BTC ETFs to spot ETH ETFs and noted that the inflows for ETH ETFs might be lower, estimating around $0.5 billion to $1.5 billion within six months. He highlighted the challenges Ethereum faces in convincing traditional finance investors and suggested that ETH might experience a modest increase before the spot ETFs launch, ranging between $2,400 and $3,800 post-launch.
Despite the challenges, Kang remains cautiously optimistic about ETH’s long-term prospects, especially if large financial players integrate blockchain technology into traditional financial systems. He believes that while the launch of spot ETH ETFs will bring some new capital into Ethereum, the scale and impact will be less than what was seen with spot BTC ETFs.
Kang’s overall thesis is that the true net buying for ETH might be lower than expected, and the market has already priced in much of the demand for spot ETH ETFs. He anticipates a continued downtrend for the ETH/BTC ratio over the next year.
