VanEck predicts Ethereum to reach 22K by 2030 following expected ETF approval
VanEck has established a new target price for Ethereum’s native token, Ether (ETH), forecasting that it will reach $22,000 by 2030. This prediction signifies a significant increase from its current value of approximately $3,850. The global investment firm had previously speculated that Ether ETFs could surpass Bitcoin ETFs in terms of market size.
In its latest report on June 5, VanEck attributed this bullish forecast to Ethereum’s disruptive capabilities and the revenue it generates for token holders. The firm’s in-depth analysis showcases Ethereum’s influence across various industries such as finance, banking, payments, marketing, advertising, social media, gaming, infrastructure, and artificial intelligence. VanEck believes that the approval of Ether ETFs, along with on-chain data analysis, supports their outlook.
“We expect that spot Ether ETFs are on the verge of being approved for trading on U.S. stock exchanges,” the report stated. “This development would allow financial advisors and institutional investors to securely hold this unique asset with qualified custodians, while benefiting from the pricing and liquidity advantages associated with ETFs.”
VanEck highlights the disruptive potential of Ethereum-based technology to deliver cost savings, increased efficiency, and enhanced transparency, potentially capturing market share from traditional financial and tech institutions with a combined total addressable market of $15 trillion. The report also predicts that free cash flows from revenue generated by holding Ether will reach $66 billion by 2030, further bolstering its projected valuation.
Ether has seen a more than 63% increase year-to-date according to data from CoinMarketCap. Ryan Sean Adams, co-founder of Bankless, pointed out that despite lower user numbers, the Ethereum blockchain generates three times more in fees than the top Layer 2 networks and Solana combined, describing it as a “modern miracle” in a post on June 6.
VanEck’s proposed spot Ether ETF, denoted by the ticker symbol “ETHV” and listed on the Depository Trust and Clearing Corporation (DTCC), is currently inactive and awaiting regulatory approval. Last month, QCP Capital, a crypto asset trading firm, predicted a potential 60% surge in Ethereum’s price, reaching around $6,000 if a spot ETF is approved. This optimistic outlook is in line with research firm Bernstein’s observation that the demand inflow following Bitcoin ETF approvals could lead to similar price movements for Ethereum.
According to data from crypto.news, Bitcoin (BTC) surged 66% from around $44,300 to a peak of $73,700 within two months following ETF approval. ETH is eyeing $4,100 ahead of Spot Ethereum ETFs trading as ETFSwap gains traction.
