Is Ethereum Set To Soar 250%?

Just a couple of months ago, the consensus view was that an Ethereum ETF would not be approved. At the time, the price of Bitcoin diverged materially from that of Ether.

But the breadcrumbs were pointing to a different outcome. It was clear that Wall Street was favoring Ethereum because of its smart contracts and flexible architecture; two key attributes that positioned it more favorably than Bitcoin.

None other than Goldman Sachs skewered Bitcoin as being highly limited in its utility, whereas Ethereum was seen as foundation of an application layer (think Apple iPhone with apps on top).

Then another Wall Street heavyweight led the charge for Ethereum, and it was a name not to be ignored, Larry Fink of Blackrock. He saw Ethereum as a crucial stepping stone towards tokenization, a cause apparently close to his heart, and was a vocal advocate for it.

It wasn’t a surprise that an Ethereum ETF therefore got approved but what does it mean for its price?

Key Points

• Despite initial doubts, Ethereum received ETF approval, supported by Wall Street’s preference for its smart contracts and architecture, with key advocates like Goldman Sachs and Blackrock’s Larry Fink.
• Standard Chartered forecasts $45 billion in capital inflows within a year, potentially raising Ethereum’s price to $8,000, following the trend of Bitcoin ETFs.
• Analysts predict Ethereum could reach $14,000 by the end of 2025, driven by its foundational role in blockchain applications, as supported by major financial institutions.

Tectonic Shift In Ethereum

Although the vast majority of analysts, including those at Bloomberg, gave low odds of Ethereum receiving ETF approval, the SEC stated on May 23 that an Ethereum ETF would receive a stamp of approval.

Standard Chartered, who accurately predicated the market impact of Bitcoin ETFs saw even higher potential for Ethereum, believing that it will result in substantial capital inflows and lead to higher prices, just as was the case with Bitcoin.

A whopping $45 billion in inflows are forecast over the first year following approval of Ethereum and Standard Chartered forecasts that a price increase to as much as $8,000 is on the cards.

But how high could it go longer term?

2025 Ethereum Price Forecast

The good news doesn’t stop there. The analyst who correctly forecast Bitcoin’s rise following approval of its ETFs, estimates that Ether could rise to as high as $14,000 by end of next year.

If that’s correct then the current price under $4,000 might seem like Ethereum has been on a tear when in fact it’s just the beginning of a massive bull run.

The basis for the forecast is the long vaunted idea that Ethereum is the foundational layer for blockchain applications much like iOS is the foundation for applications such as Uber and Facebook. If so, most of the value will accrue to Ethereum.

It certainly seems like Goldman and Blackrock think so. And if assets do indeed become tokenized as Larry Fink seems to support, expect even higher prices in the medium to long-term.