VanEck report: Ethereum price is expected to reach $22,000 in 2030

This site (120btc.coM): The U.S. Securities and Exchange Commission (SEC) officially approved the 19b-4 documents submitted by eight Ethereum spot ETF issuers on May 24. It paves the way for ETH’s listing and potential large-scale investment, with multiple analysts predicting that the S-1 filing is expected to be approved within weeks.

Ethereum target price raised to US$22,000

In this context, Bitcoin spot ETF issuer VanEck released a report yesterday (5th) stating that the price of Ethereum is expected to rise in 2030 will reach $22,000, which is equivalent to 5.67 times the current price of Ethereum.

At the same time, the report also gives reasons why the price of Ethereum can reach $22,000: Driven by a strong value proposition, the Ethereum network may continue to gain traction from traditional financial market participants, as well as an increasing number of Rapidly expanding its market share among large technology companies. If it can achieve this while maintaining its leadership position as a smart contract platform, we estimate that by 2030, holders will have access to $66 billion in free cash flow, supporting $2.2 trillion in assets per token Valued at $22,000.

However, it is worth noting that the target price of US$22,000 means that Ethereum can account for 70% of the market share in the smart contract market. In the picture below, we can see further predictions by VanEck:

• Smart contract market share is 90%: ETH price is expected to reach US$154,000 in 2030.

• Smart contract market share is 15%: ETH price is estimated to be only $360 in 2030.

VanEck analysts said in a report that the expectation that the Ethereum spot ETF will be launched soon will promote the flow of funds from traditional financial markets to Ethereum. . As a result, VanEck updated the financial model and re-evaluated the investment value of Ethereum.

According to a report released by encryption analysis company K33 Research on the 4th, the Ethereum spot ETF may attract a net inflow of US$3.1 billion to US$4.8 billion in the first five months after its launch in the United States.

Optimum Portfolio Ratio

On the other hand, VanEck also mentioned in the report that if investors want to invest in a BTC and ETH portfolio, the optimal allocation ratio is 71.4% of BTC and 28.6% of ETH. The data shows that this proportional allocation produces the highest Sharpe Ratio, that is, it is the best return allocation after taking risk into account.

The Sharpe ratio can measure the performance of investments in the financial sector relative to risk-free assets after adjusting for risk. Investors use the Sharpe ratio to compare which investment performs better when assuming the same risk. The higher the Sharpe ratio, the better the performance.

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