Ethereum: Will Spot ETF Approval Succeed in Boosting Price?

Expectations for the launch of the Ethereum ETF are mixed among analysts, with some sharing their uncertainty. 

With the potential launch of the ETF, expected for early July, Andrew Kang, founder of crypto fund Mechanism Capital, expects further declines, predicting that ETH it could drop to $2,400. 

In his recent analysis, Kang stated:

Prior to the ETF launch, I expect ETH to trade between $3,000 and $3,800. After [its potential launch], my expectations are for [trading between] $2,400 to $3,000.

Kang believes initial flows into ETFs may be limited for two main reasons. 

First, the unexpected OK of the SEC in late May left little time to convince large ETH holders to switch to ETFs. Second, ETFs lack the benefits that investors get from staking activities, which can alienate them.

As a result, Kang argued that the fund could only attract 30% of the flows seen at Bitcoin ETF in the first six months, approximately $1.5 to $4.5 billion.

On the other hand, QCP analysts earlier predicted , that Ethereum could reach $4,000 again after the launch of an exchange-traded fund.