VanEck predicts Ethereum to reach 22K by 2030 following expected ETF approval
VanEck has established a new target price for Ether (ETH), the primary token of the Ethereum protocol, forecasting that it will hit $22,000 by 2030. This prediction signifies a significant increase from its current price of approximately $3,850. The global investment firm had previously projected that Ether ETFs could outpace Bitcoin ETFs in terms of market size.
In its most recent report dated June 5, VanEck attributed this optimistic forecast to Ethereum’s disruptive capabilities and the revenue it generates for token holders. The firm’s comprehensive analysis showcases Ethereum’s influence across 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, supports their forecast.
“We foresee that spot Ether ETFs are close to being approved for trading on U.S. stock exchanges,” the report mentioned. “This advancement would allow financial advisors and institutional investors to securely hold this unique asset with qualified custodians, while benefiting from the pricing and liquidity advantages typical of ETFs.”
According to VanEck, the driving force behind Ether’s rise to $22,000 is Ethereum-based technology’s capacity to provide lower costs, increased efficiency, and enhanced transparency. The firm suggests that this shift could potentially transfer a significant market share from traditional financial and tech institutions, with a combined total available market of $15 trillion, to blockchain-based solutions. The report also forecasts that free cash flows from revenue generated by holding Ether will reach $66 billion by 2030, further reinforcing its projected valuation. Year-to-date data from CoinMarketCap shows that Ether has surged by over 63%.
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. He referred to it as a “modern miracle” in a post on June 6. Layer 2 solutions pay Ethereum fees to settle transactions on the main chain and benefit from its security.
VanEck’s proposed spot Ether ETF, with the ticker symbol “ETHV” already listed on the Depository Trust and Clearing Corporation (DTCC), currently remains inactive pending regulatory approval. Last month, Crypto asset trading firm QCP Capital forecasted a potential 60% surge in Ethereum’s price, pushing it to approximately $6,000 if a spot ETF is given the green light. This optimistic outlook aligns with research firm Bernstein’s perspective, suggesting that the demand inflow observed by Bitcoin ETFs post-approval could result in similar price movements for Ethereum.
Based on data from crypto.news’s price page, Bitcoin (BTC) surged by 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.
