While Bitcoin made headlines in 2024 with the adoption of spot exchange-traded funds (ETFs) and the upcoming halving, Ethereum (ETH) is potentially positioned to make waves in the coming months and years, according to Cathie Wood, CEO of Ark Invest.
Ark Invest held its Big Ideas event, an annual opportunity to discuss high-level market trends and potentially disruptive technologies. At one of these events, Wood claimed that Ethereum could reach a market cap of $20 trillion by 2032.
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ETH’s current market capitalization is approximately $400 billion and will approach $500 billion by 2024. The market cap of the S&P 500 is approximately $40 trillion to 45 trillion. If ETH were to amass a market cap of $20 trillion, the price per token would be around $166,000.
The CEO of Ark Invest believes that the mainstream adoption of ETH as a financial instrument will be the main catalyst for this price prediction. Ethereum is a way for people to access decentralized financial applications. The applications allow anyone to interact with various financial actions, such as trading, borrowing, borrowing and staking, without going through a centralized intermediary. If these applications become widely adopted, the demand for ETH – and its price – could increase.
Discussions about spot Ethereum ETFs are ongoing. Releasing the ETFs could have an impact similar to that of spot Bitcoin ETFs, which attracted massive amounts of inflows and pushed Bitcoin’s price higher.
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But potential ETF sponsors face several regulatory hurdles, most notably related to the Security and Exchange Commission’s (SEC) classification of ETH as a security rather than a commodity as BTC was classified. Despite this, some are still convinced that ETH ETFs could hit the market as soon as this year, which could positively impact the price of Ethereum.
Wood is known for making extraordinary predictions about tokens far into the future. For example, at Bitcoin Investor Day in March, she predicted that Bitcoin would peak at $3.8 million by 2030. While these predictions may have some merit, they are largely speculative and could be affected by Ark’s entanglement with the assets. The company was one of many to release a spot Bitcoin ETF (ARKB) and also offer an Ethereum futures ETF (ARKZ). So Wood could be making these predictions as a way to increase engagement with her company’s products.
If ETH reaches $166,000 per token by 2030, it would generate huge profits. Specifically, a $1,000 investment would be worth $54,330. A $10,000 investment would be worth $543,300. These massive profits may not come to fruition, but Wood says it’s a possibility.
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This article Cathie Wood’s Bullish Ethereum (ETH) Prediction: How Much Invested $1,000 and $10,000 Could Be Worth originally appeared on Benzinga.com
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