VanEck has set a new price target for Ether (ETH), the native token of the Ethereum protocol, forecasting it will reach $22,000 by 2030. This prediction represents a significant increase from its current price of approximately $3,850.
Previously, the global investment firm had suggested that Ether ETFs could surpass Bitcoin ETFs in market size. In its latest report dated June 5, VanEck attributes this optimistic outlook to Ethereum’s disruptive potential and the cash flow it generates for token holders.
VanEck’s detailed analysis underscores Ethereum’s transformative impact across various sectors, including finance, banking, payments, marketing, advertising, social media, gaming, infrastructure, and artificial intelligence. The firm asserts that the approval of Ether ETFs, bolstered by on-chain data analysis, supports their prediction.
“We anticipate that spot Ether ETFs are nearing approval to trade on U.S. stock exchanges,” the report states. “This development would enable financial advisors and institutional investors to securely hold this unique asset with qualified custodians, while benefiting from the pricing and liquidity advantages characteristic of ETFs.”
According to VanEck, Ethereum’s technology, which offers lower costs, greater efficiency, and enhanced transparency, is the driving force behind Ether’s projected rise to $22,000. This shift could potentially transfer significant market share from traditional financial and tech institutions, which have a combined total available market of $15 trillion, to blockchain-based solutions.
The report also projects that free cash flows from revenue generated by holding Ether will reach $66 billion by 2030, further supporting its estimated valuation.
Ether has risen by more than 63% year-to-date, according to data from CoinMarketCap. Ryan Sean Adams, co-founder of Bankless, noted that despite having fewer users, the Ethereum blockchain generates three times more in fees than the top Layer 2 networks and Solana combined. In a June 6 post on X, Adams called this a “modern miracle.”
Layer 2 solutions pay Ethereum fees to settle transactions on the main chain, benefiting from its security. VanEck’s proposed spot Ether ETF, with the ticker symbol “ETHV” and listed on the Depository Trust and Clearing Corporation (DTCC), is currently inactive and awaits regulatory approval.
Last month, crypto asset trading firm QCP Capital predicted a potential 60% rally in Ethereum’s price, which could push it to around $6,000 if a spot ETF is approved. QCP’s bullish outlook aligns with research firm Bernstein, which noted that the sustained demand seen for Bitcoin ETFs post-approval would likely lead to similar price action for Ethereum.
According to data from crypto.news’s price page, Bitcoin (BTC) surged 66%, from around $44,300 to a peak of $73,700, within two months following ETF approval.