VanEck predicts Ethereum to reach 22K by 2030 following expected ETF approval
VanEck has established a bold new price target for Ether (ETH), the digital currency native to the Ethereum network, predicting that it will soar to $22,000 by the year 2030. This projection marks a significant increase from its current value of approximately $3,850. The global investment firm had previously speculated that Ether exchange-traded funds (ETFs) could outpace their Bitcoin counterparts in terms of market size.
In its most recent report released on June 5, VanEck attributed this optimistic forecast to Ethereum’s innovative capabilities and the revenue it generates for token holders. The firm’s in-depth analysis showcases Ethereum’s influence in various sectors, such as finance, banking, payments, marketing, advertising, social media, gaming, infrastructure, and artificial intelligence. VanEck believes that the approval of Ether ETFs, combined with on-chain data analysis, bolsters their prediction.
“We anticipate that spot Ether ETFs are on the verge of being approved for trading on U.S. stock exchanges,” the report stated. “This milestone would allow financial advisors and institutional investors to securely hold this unique asset with qualified custodians, while benefiting from the pricing and liquidity advantages that ETFs offer.”
According to VanEck, Ethereum’s potential to reach $22,000 is driven by its technology’s ability to lower costs, enhance efficiency, and increase transparency. The firm suggests that this shift could potentially redirect a significant portion of market share from traditional financial and tech institutions, which collectively have an available market worth $15 trillion, towards blockchain-based solutions. The report also predicts that the revenue generated from holding Ether will result in free cash flows of $66 billion by 2030, further supporting their valuation.
Ether has experienced a more than 63% increase in value year-to-date, according to data from CoinMarketCap. Analysts anticipate that Ethereum Layer 2 networks could surpass $1 trillion in the next six years, as reported on crypto.news.
Ryan Sean Adams, a co-founder of Bankless, highlighted in a June 6 post that despite having fewer users, the Ethereum blockchain generates three times more in fees than the top Layer 2 networks and Solana combined. Adams described this as a “modern miracle.”
Layer 2 solutions pay Ethereum fees to settle transactions on the main chain and benefit from its security. VanEck’s proposed spot Ether ETF, known by the ticker symbol “ETHV” and listed on the Depository Trust and Clearing Corporation (DTCC), is currently inactive pending regulatory approval.
Last month, Crypto asset trading firm QCP Capital predicted a potential 60% surge in Ethereum’s value, pushing it to around $6,000 if a spot ETF is given the green light. This optimistic outlook aligns with that of research firm Bernstein, which suggested that the sustained demand seen post-approval for Bitcoin ETFs could lead to similar price movements for Ethereum.
Historical data from crypto.news’s price page indicates that Bitcoin (BTC) experienced a 66% increase from around $44,300 to a peak of $73,700 within two months following ETF approval. Ethereum is now eyeing $4,100 ahead of the potential introduction of Spot Ethereum ETFs for trading, as ETFSwap gains traction.
