VanEck analysts raise Ethereum price target to $22,000 by 2030

Analysts working at U.S investment firm VanEck, which has applied to list a spot ether ETF, said they have raised their 2030 price prediction for Ethereum ETH +1.34% to $22,000. 

"We've raised our 2030 ETH price target to $22,000, influenced by ether ETF news, scaling progress, and our read of onchain data," VanEck posted to X on Wednesday with a link to the report authored by Matthew Sigel, Patrick Bush and Denis Zinoviev.

The firm is one of several Wall Street investment managers now seeking to list spot ether ETFs after successfully launching spot bitcoin ETFs in January. The Securities and Exchange Commission approved spot ether ETFs last month . Investors who purchase the exchange-traded funds will be able to benefit if the cryptocurrency's price appreciates without having to buy the token directly. Likewise, sponsors of the ETFs gain fee income as more assets pile into their funds. 

"We anticipate that spot ether ETFs are nearing approval to trade on U.S. stock exchanges," the VanEck analysts said in the note. "This development would allow financial advisors and institutional investors to hold this unique asset with the security of qualified custodians, and benefit from the pricing and liquidity advantages characteristic of ETFs." 

Once listed, spot Ethereum ETFs could attract between $3.1 billion and $4.8 billion in net inflows during their first five months of trading, according to K33 Research .

The authors of the VanEck report "have positions in Ethereum directly or via private funds," according to a spokesperson for the firm. "The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees," according to the report .

RELATED INDICES

Continued growth for Ethereum

"The Ethereum network is likely to continue its rapid market share growth from traditional financial market participants and, increasingly, Big Tech," according to the report. "Should it do so while maintaining its dominant position among smart contract platforms, we see a credible path to $66 billion in free cash flow to token holders supporting a $2.2 trillion asset, or $22,000 per coin, by 2030."

The $22,000 price target represented the authors' base case price target. The bullish and bearish price predictions were $154,000 and $360, respectively.

"We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world. ETH can be thought of as 'Digital Oil' because it is consumed by engaging in activity on Ethereum," the authors also wrote.

Bitcon's price has risen 54% to about $71,000 from roughly $46,000 since spot bitcoin ETFs began trading in January, according to The Block Price Page . Top Wall Street firms like BlackRock and Fidelity launched spot bitcoin ETFs alongside VanEck.