Bitwise has predicted that Ethereum will rise above $5000 after the launch of ETFs

Bitwise predicts that after the launch of ETFs based on Ethereum, its price will exceed $5000. CoinDesk reports this, citing a company report.

Matt Hougan, the Chief Investment Officer at Bitwise, noted that initial price fluctuations might be significant due to the outflow of funds from the Grayscale Ethereum Trust, whose assets amount to $11 billion and could be converted into ETFs.

Bitwise experts point out that after the launch of spot ETFs in January, Bitcoin grew by approximately 25%. If we consider October 2023, when expectations of new products began to influence the market, the growth exceeded 110%.

Analysts believe that investment flows into exchange-traded funds will have a greater impact on Ethereum compared to Bitcoin due to three structural differences:

Short-term zero inflation of ETH versus 17% for BTC (in January) creates increased demand in the absence of new supply.
Ethereum validators do not need to sell coins to support operational activities, unlike Bitcoin miners.
28% of ETH is locked in staking and, therefore, absent from the market.
Bitwise expects that spot ETH ETFs will attract up to $15 billion in the first 18 months.

Analysts at Steno Research gave a similar forecast, expecting Ethereum to reach at least $6500.

Bernstein suggested that demand for Ethereum funds would be lower compared to Bitcoin products due to the lack of staking opportunities.