VanEck, an investment firm, anticipates that the price of Ethereum (ETH) will soar to $22,000 per token by 2030. This is attributable to the revenue that Ethereum is expected to generate for token holders and its transformative influence.
In a blog post published on Wednesday, the asset manager referenced the prospective approval of spot Ether ETFs in the United States. This would enable financial advisors and significant investors to store Ethereum securely with the assistance of qualified custodians.
They would also benefit from the advantages of ETFs, including the ease of purchasing and selling and the availability of liquidity.
VanEck believes Ether can disrupt traditional financial institutions and tech titans like Apple and Google. The analysts emphasized the expanding user base, which is estimated to be around 20 million monthly active users. Furthermore, they stated that Ethereum has facilitated $5.5t in stablecoin transfers and processed $4t in settlements over the past year.
Ether Cash Flow Could Fuel $2.2 Trillion Valuation: VanEck
Ethereum has the potential to generate $66 billion in annual free cash flow for token holders by 2030 if it maintains its position as the leader in intelligent contracts during this expansion. The asset manager stated that this equates to a prospective market valuation of $2.2t, or approximately $22,000 per coin.
According to Matthew Sigel, Patrick Bush, and Denis Zinoviev, analysts at VanEck, a 70/30 allocation of Bitcoin to Ethereum (ETH) is recommended for crypto-only portfolios. This weighting is anticipated to provide the most advantageous equilibrium between potential returns and risk.
“We think that ETH is a revolutionary asset with few analogies in the non-crypto financial sector,” they stated. “ETH can be referred to as ‘Digital Oil’ because it is consumed through Ethereum activity.”
VanEck’s Ether ETF Listed Not Yet Active
VanEck’s proposed spot Ether ETF is already listed on the Depository Trust and Clearing Corporation (DTCC) and has a ticker symbol (“ETHV”). Nevertheless, the ETF is inactive, meaning it can only be traded once it receives regulatory sanction.
Ben Beddow of Crypto News predicted that Ethereum would reach a record high of $10,200 in 2029 last month, attributed to the Bitcoin halving event the year prior.