Key Points
- US investment firm VanEck predicts Ethereum price will reach $22,000 by 2030.
- The firm’s bullish outlook is due to the anticipated approval of the spot Ethereum ETF.
VanEck, a US-based investment company and an applicant for the spot Ethereum ETF, recently upped its Ethereum price prediction to $22,000 by 2030. The firm attributes this optimistic forecast to the expected approval of the spot Ethereum ETF later this year.
VanEck, along with several other Wall Street companies, has applied for the spot Ether ETFs, which are currently being reviewed by the US SEC. While the SEC has greenlit the 19b-4 filings for most applicants, it is still examining the S-1 registrations.
Spot Ether ETFs’ Impact
According to a research note by VanEck analysts Matthew Sigel, Patrick Bush, and Denis Zinoviev, they expect the soon-to-be-approved spot ether ETFs to trade on US stock exchanges. This will 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.
A report from K33 Research suggests that the spot Ether ETFs could see inflows of around $4.8 billion within the first five months of listing, potentially pushing the ETH price to $5,000 and new all-time high levels.
Ethereum Network’s Growth
The same report also indicates that the Ethereum network is set to continue its rapid growth in market share, attracting not only traditional financial market participants but also an increasing number of Big Tech companies.
If Ethereum maintains its leading role among smart contract platforms, the report predicts a scenario where token holders could generate approximately $66 billion in free cash flow. This could support a valuation of $2.2 trillion for the asset, potentially leading to a value of $22,000 per coin by 2030.
It’s worth noting that the $22,000 price prediction for Ethereum is the base case. The bullish and bearish price predictions are $154,000 and $360 respectively. The authors of the report also believe that ETH is a revolutionary asset with few parallels in the non-crypto financial world, referring to it as ‘Digital Oil’ since it is consumed by activity on Ethereum.
Over the last four years, the total number of users in the Ethereum ecosystem has surged by 9x. According to data from crypto ETF issuer Bitwise, Ethereum and its scaling solutions Arbitrum and Polygon collectively averaged over 250,000 daily active users in Q1 2020. The majority of these users were attributed to the Ethereum layer-1 mainnet.
