Andrew Kang’s ETH Price Prediction Following Ethereum ETFs

Renowned crypto analyst Andrew Kang has recently shared his predictions for Ethereum’s price in light of the upcoming Ethereum ETFs.

In a recent statement, Kang highlighted that while Bitcoin ETFs opened the door for numerous new investors to allocate Bitcoin in their portfolios, the impact of Ethereum ETFs might be less pronounced.

Kang recalled his bullish stance when BlackRock filed for a Bitcoin ETF while Bitcoin was at the $25,000 level. Since then, Bitcoin has delivered a 2.6x return, while Ethereum has yielded a 2.1x return. From the cycle’s bottom, both Bitcoin and Ethereum have provided a similar 4.0x return.

However, Kang argues that unless Ethereum develops an attractive path to improve its economy, an ETH ETF might not offer substantial benefits.

Referring to Bloomberg’s Eric Balchunas, Kang suggested that Ethereum ETF flows could be around 10% of Bitcoin’s. This would translate to real net inflows of $0.5 billion and reported net inflows of $1.5 billion within six months.

Kang’s base case scenario for ETH ETF flows is 15%. Starting from Bitcoin’s real net value of $5 billion, adjusting for Ethereum’s market cap, which is 33% of Bitcoin’s, and a 0.5 access factor, we arrive at $0.84 billion in real net purchases and $2.52 billion in reported net value. Kang also presented an optimistic scenario with real net inflows of $1.5 billion and reported net inflows of $4.5 billion, approximately 30% of Bitcoin’s flows.

According to Kang, in either scenario, the real net purchases are significantly lower than the previous ETF, the futures ETF flows, which amount to $2.4 billion. This, Kang suggests, means that the current market might already be overpricing the Ethereum ETF.

Nonetheless, Kang does not believe Ethereum will plummet to zero. He expects Ethereum to trade between $3,000 and $3,800 before the ETF launch and between $2,400 and $3,000 post-launch. Moreover, if Bitcoin reaches $100,000 by Q4 2025, Ethereum could hit new all-time highs, although the Ethereum/Bitcoin ratio might be lower.