Market observers believe that if the world’s largest asset management company BlackRock’s spot Ethereum ETF gets approved by the United States Securities and Exchange Commission (SEC), ETH’s price could soar. Analyst Austin Arnold expects the price of the so-called altcoin king to grow by at least tenfold based on current prices.
Anticipating Exceptional Institutional Capital Inflow into Ethereum
Ethereum’s price saw a significant increase in November following BlackRock’s intensified efforts in the cryptocurrency market, including an application for a spot Bitcoin ETF alongside Ethereum. If approved, the Spot Ethereum ETF would be listed on Nasdaq, unlocking the door to a wide new audience who have so far avoided buying ETH due to technical, security, or liquidity concerns.
This translates to ETH becoming a legitimate investment opportunity even for traditional investors. As a result, Ethereum’s price is currently trading above the $2,000 level, buoyed by expectations. Some analysts are making extremely optimistic predictions regarding where Ethereum might head in the next bull run.
TheStreet analyst Austin Arnold touched upon this topic, saying, “The world’s largest asset management company BlackRock is now supporting both Bitcoin and Ethereum, which is of great significance for the future of both assets.” Arnold then evaluated how much of BlackRock’s assets under management (AUM) could be allocated to the spot Ethereum ETF and how this could impact the asset’s market value.
While Arnold speculated that Ethereum could reach $41,000 after the ETF’s approval, he stressed that the largest altcoin may not go that far. According to the analyst, a more realistic forecast in this positive scenario would be $28,000 or $10,000. Arnold stated, “Whether it’s $28,000, $45,000, or $10,000, it doesn’t matter, I’m holding my ETH for the long term.” Furthermore, the analyst is aware of a limit to the price rise in the next market cycle. For him, the most realistic target level for ETH is $10,000.
Key Catalysts for the Rise in ETH Price
One of the underlying factors for Arnold’s extreme optimism about Ethereum is the differences in structure, tokenomics, and usage between Bitcoin and Ethereum. Arnold stated, “One is trying to be digital gold, a store of value. On the other hand, Ethereum is aiming to be a digital oil, running a global, decentralized supercomputer, building decentralized applications. Just as a car needs gasoline to run, Ethereum will be the fuel that powers the system.”
The analyst also highlighted Ethereum’s supply burn mechanism, emphasizing that this makes ETH deflationary. Combined with incoming ETF liquidity, the analyst expects this to significantly accelerate the price.