Ethereum could be set to experience a notable decline as founder of crypto venture capitalist firm Mechamism Capital Andrew Kang predicted the asset to fall 30% after its recently approved Spot ETH ETF goes live. The forecast would see the second-largest cryptocurrency by market cap drop to lows of $2,400.
Over the last 24 hours, Ethereum has fallen more than 5.7% according to CoinMarketCap. The last 30 days have seen ETH on a streak of losses, falling to its current $3,260 level alongside a bearish market. With the impending Spot Ethereum ETF set to go live soon, it may not bring the relief the market hopes.
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Ethereum ETF Launch Won’t Save Price According to One Expert
The approval of Spot Bitcoin ETFs in January of this year opened the door for Ethereum to receive the same approval just five months later. Yet, the market may not reward the latter in the same way, as one expert has warned of an adverse effect the investment vehicle could have on the asset.
Indeed, Ethereum has been predicted to fall 30% when its spot ETH ETF goes live, according to crypto VC founder Andrew Kang. Specifically, Kang took to X (formerly Twitter) to forecast an ETH price of “$2,400 to $3,000” after the product launches.
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“How much upside would an ETH ETF provide? I would argue not much,” Kang said in the post. Kang also predicted that the Ether product would attract 15% of the flows that Bitcoin ETFs have observed since their approval. The prediction aligns with industry insiders who have estimated fathering between 10-20% of BTC ETF flows.
Kang remarked that only $5 billion in new funds entered spot Bitcoin ETFs in the first six months. For Ethereum, that time frame may only bring in $840 million in ‘true inflows’ according to the venture capitalist. That time period also saw Bitcoin reach an all-time high of $73,000 in March. During that bull cycle, Ethereum surged to $4,000