A prominent trader predicts that Ethereum (ETH) prices could soar to $10,000 in 2024, marking a nearly 200% increase from its current level of $3,600.
Last week, cryptocurrency investment products saw inflows of nearly $2 billion, extending a five-week trend to over $4.3 billion, according to a report by asset manager CoinShares on Monday. Trading volumes in exchange-traded products (ETPs) surged to $12.8 billion for the week, a 55% increase from the previous week. Bitcoin led the way with inflows exceeding $1.97 billion, while Ethereum (ETH) experienced its highest weekly inflows since March, totaling nearly $70 million.
Spot bitcoin exchange-traded funds (ETFs) in the U.S. have seen a resurgence in buying activity since mid-May. This followed a lackluster April where many products, including BlackRock’s IBIT, faced days of zero net inflows and even outflows. However, inflows have since rebounded, and IBIT became the largest bitcoin ETF last week, accumulating over $20 billion in assets since its January launch.
“Unusually, inflows were observed across nearly all providers, with a noticeable slowdown in outflows from incumbents,” noted CoinShares analyst James Butterfill. “The positive price action resulted in total assets under management (AuM) surpassing the $100 billion mark for the first time since March this year.”
Butterfill attributed the recent ETH buying spree to the unexpected SEC decision to approve spot ether ETFs. He added that traders anticipate continued inflows into ETH products in the upcoming months, potentially driving a year-end rally.
Ed Hindi, Chief Investment Officer at Tyr Capital, expressed optimism about ETH’s future. “We could see $5-10 billion of fresh capital flowing into ether products in the short to medium term,” Hindi told CoinDesk via email. “This influx could fuel an end-of-year rally in ETH and its ecosystem to new record highs.”
Hindi also suggested that a price target of $10,000 for ETH in 2024 is now reasonable, especially considering ETH’s deflationary nature and other supportive factors.
In a historic move, the U.S. Securities and Exchange Commission (SEC) approved key regulatory filings for ETH ETFs in May, marking a significant milestone for the second-largest cryptocurrency. The SEC gave the green light to eight ETFs from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest, 21Shares, Invesco Galaxy, and BlackRock, allowing them to list on the Nasdaq, NYSE Arca, and Cboe BZX exchanges.
