Odaily Planet Daily News According to Andrew Kang, co-founder of Mechanism Capital, in a post on X, he analyzed the potential impact of Ethereum spot ETF on the market.

It is stated that the Bitcoin spot ETF provides a channel for many new buyers to allocate Bitcoin in their investment portfolios, but the impact of the Ethereum ETF is far less clear. Unless Ethereum creates a convincing way to improve its economic situation, its price will not see significant upside potential from the approval of the spot ETF.
Kang expects that the capital flow of Ethereum spot ETF will be lower than the market's general expectations, especially in the past few weeks: because the approval of the ETF was unexpected, the issuer did not have much time to persuade large holders to convert their ETH to ETF; on the other hand, the attractiveness of converting ETH for holders is small because they need to give up collateral or the income from using ETH as DeFi collateral (note: the loan-to-value ratio is only 25%).
He further added that at a certain price, Ethereum will still be considered valuable. When Bitcoin rises in the future, it will be pulled up to some extent. Before the ETF is launched, it is expected that the trading price of ETH will be between $3,000 and $3,800; after the ETF is launched, the expectation is $2,400 to $3,000. However, if BTC reaches $100,000 in the fourth quarter/first quarter of 2025, this may lead ETH to reach a new historical high, but ETH/BTC will further decline, ranging from 0.035 to 0.06 in the next year.