Ethereum (CRYPTO:ETH) prices may drop following the launch of potential spot exchange-traded funds (ETFs), according to analyst Andrew Kang.
The market response to Ethereum ETFs is less enthusiastic compared to Bitcoin (CRYPTO:BTC) ETFs launched earlier this year.
Kang predicts Ethereum ETF flows will be significantly lower than Bitcoin’s, with estimated net buying between $500 million and $1.5 billion in six months.
He attributes the muted impact to Ethereum being perceived more as a tech asset than a macro asset, and to its current higher valuation making it less attractive to institutional investors.
Despite some bullish perspectives, such as Ethereum’s potential use in tokenising real-world assets, Kang expects Ethereum’s price to decline post-ETF launch, possibly dropping 30% from its current value.