Crypto Stocks Muted as Market Anticipates Spot Ethereum ETFs Approvals This Week

Crypto-related stocks including Coinbase Global COIN, MicroStrategy Inc. MSTR, Marathon Digital Holdings MARA and others showed subdued reactions to Nate Geraci

Crypto-related stocks, including Coinbase Global (NASDAQ:COIN), MicroStrategy Inc. (NASDAQ:MSTR), Marathon Digital Holdings (NASDAQ:MARA), and others, showed mixed reactions on Monday after ETF Institute President Nate Geraci predicted approvals for spot Ethereum (CRYPTO:ETH) ETFs this week. However, analysts are divided on how the ETF will affect the price of ETH.

What Happened: The launch of spot Ether exchange-traded funds (ETFs) could lead to a 30% drop in the price of Ether, according to Andrew Kang, founder and partner at Mechanism Capital. Kang suggests that the price of Ether could drop from its current value of $3,410 to as low as $2,400, CoinTelegraph reported on Monday.

Coinbase was trading 3.70% lower at $217.50 after closing at $225.86 on Friday, while Robinhood Markets, Inc. (NASDAQ:HOOD) was trading 1.97% lower at $21.85 after it closed at $22.29 on Friday. Marathon Digital was 5.15% lower since its close at $19.21 and was trading at $18.22 while MicroStrategy was trading 5.68% lower at $1,399.50 after Friday’s close of $1,483.76. Riot Platforms, Inc (NASDAQ:RIOT) also reacted to the conversation by trading 3.87% lower at $9.180 during pre-market.

Kang expressed skepticism about the potential benefits of an Ether ETF in a recent post. “How much upside would an ETH ETF Provide? I would argue not much,” Kang said, predicting a price range of $2,400 to $3,000 post-ETF launch.

Kang anticipates that spot Ether ETFs will attract only 15% of the flows that spot Bitcoin (CRYPTO:BTC) ETFs have seen. This is in line with the 10–20% range estimated by Bloomberg ETF analysts Eric Balchunas and James Seyffart.

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However, not everyone agrees with Kang’s predictions. Industry analyst Patrick Scott expects a similar directional movement to how the spot Bitcoin ETFs have performed, but he doesn’t foresee Ether’s price doubling. Meanwhile, asset management firm VanEck projects that spot Ether ETFs could drive Ether to $22,000 by 2030.

Kang also raised concerns about Ethereum’s future as a cash flow “machine,” suggesting that Ethereum may resemble an overpriced tech stock. He also noted that the removal of staking from the proposed spot Ether ETFs might deter investors from converting their spot Ether into ETF form.

Why It Matters: The launch of spot Ether ETFs has been a topic of discussion in the crypto world. Earlier this month, ETF Institute President Nate Geraci anticipated approvals for spot Ethereum ETFs, which could shake up the cryptocurrency market.

In a post on X, formerly Twitter, Geraci predicted that spot ETH ETFs would be approved, stating, "I’m deciphering this as spot ETH ETFs will be approved this week…Just me tho."

Geraci's views were consistent with his forecast two weeks ago when he stated that he would be shocked if spot ETFs did not receive green signals before the end of the month. "No reason for delay," he had said.

This also follows a controversial political shift that led to the SEC's approval of spot Ethereum ETFs last month, a narrative that has been called into question after President Joe Biden vetoed a bill aimed at overturning SAB 121.

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Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

News source：https://www.kdj.com/cryptocurrencies-news/articles/crypto-stocks-muted-market-anticipates-spot-ethereum-etfs-approvals-week.html

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