Ether Price Could Surge to $22k by 2030, Asset Manager VanEck Predicts

CryptoNews.com

2024-06-05 20:35:32

Abstract generation in progress

Shalini Nagarajan

Last updated:

June 6, 2024 00:35 EDT | 1 min read

Investment firm VanEck predicts Ether’s (ETH) price will skyrocket to $22,000 per token by 2030. That’s due to Ethereum’s transformative influence and the revenue it is expected to generate for token holders.

In a blog published Wednesday, the asset manager pointed to the potential approval of spot Ether ETFs in the US. This would allow financial advisors and big investors to securely hold Ethereum through qualified custodians. They would also enjoy the benefits of ETFs, such as easy buying-selling and readily available liquidity.

According to VanEck, Ether is a potential disruptor to traditional financial institutions and tech giants like Google and Apple. The analysts pointed to its growing user base, with roughly 20m active users monthly. Additionally, in the past year, Ethereum has processed $4t in settlements and facilitated $5.5t in stablecoin transfers, they said.

Ether Cash Flow Could Fuel $2.2 Trillion Valuation: VanEck

If Ethereum holds its lead in smart contracts while experiencing this growth, it could realistically generate $66b in annual free cash flow for token holders by 2030. This translates to a potential market valuation of $2.2t, or roughly $22,000 per coin, the asset manager said.

VanEck analysts Matthew Sigel, Patrick Bush, and Denis Zinoviev recommend a 70/30 allocation of Bitcoin to Ethereum (ETH) for crypto-only portfolios. This weighting is believed to offer the most favorable balance between risk and potential returns.

“We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world,” they said. “ETH can be thought of as ‘Digital Oil’ because it is consumed by engaging in activity on Ethereum.”

VanEck’s Ether ETF Listed But Not Yet Active

VanEck’s proposed spot Ether ETF already has a ticker symbol (“ETHV”) and is listed on the Depository Trust and Clearing Corporation (DTCC). However, the ETF itself is currently inactive, meaning it can’t be traded until it receives regulatory approval.

Last month, Cryptonews’ Ben Beddow predicted Ethereum will hit a record high of $10,200 in 2029, attributing this to the Bitcoin halving event in the year before.

TOKEN-4,2%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.