Andrew Kang: The market has overly high expectations for Ethereum ETFs, and the upside potential for ETH is limited

ChainCatcher news, Andrew Kang, co-founder and partner of the crypto venture capital firm Mechanism Capital, published an in-depth analysis on social media regarding the impact of Ethereum ETFs. The article states, "Although the launch of Bitcoin ETFs has attracted a large number of investors, the impact of Ethereum ETFs remains unclear. Data shows that Bitcoin ETFs have accumulated assets under management of $50 billion, but net inflows are only $14.5 billion. In contrast, the estimated net inflow for Ethereum ETFs is only 10% of Bitcoin's, which is $0.5 billion.

Andrew Kang points out that Ethereum's appeal as a tech asset is not as strong as Bitcoin's as a macro asset, and the differences in market positioning and holder base have led to this outcome. It is expected that the net buying volume for Ethereum ETFs will be far lower than that of Bitcoin ETFs, and the market's expectations for Ethereum ETFs may be overly optimistic.

Before the ETF launch, Andrew Kang predicted that the price of Ethereum would be between $3,000 and $3,800, while after the launch it might be between $2,400 and $3,000. Despite the weaker holder base of Ethereum, there is still hope for the future, especially with improvements in financial infrastructure.

Investors should be cautious about the market expectations for Ethereum ETFs to avoid investment risks caused by overly high expectations."