Mechanism Capital Co-founder: It is expected that ETH may fall to between $2,400 and $3,000 after the launch of the ETH spot ETF

Andrew Kang, co-founder of Mechanism Capital, stated on social media that the flow of Ethereum ETFs will account for about 10% to 15% of Bitcoin ETFs, bringing in a true net purchase amount of about $500 million to $1.5 billion within six months. Ethereum is more like a technological asset, rather than a macro asset like BTC. In addition, institutional investors have less interest and purchasing pressure on Ethereum because its current valuation indicators (such as P/E ratio) make it difficult for traditional financial allocators to accept. Prior to any ETF launch, Ethereum's positioning is different from Bitcoin because the asset has already risen fourfold from its low point, while BTC rose 2.75 times before its ETF launch. Therefore, Kang expects the trading price of ETH before the ETF launch to be between $3,000 and $3,800, but it may fall to between $2,400 and $3,000 after the launch. The drop in valuation will shrink the current value of the asset by 30%.