Mechanism Capital Co-founder: It is expected that after the launch of ETH spot ETF, ETH may fall to between 2400 and 3000 US dollars

Andrew Kang, co-founder of Mechanism Capital, stated on social media that Ethereum ETF flows will account for about 10% to 15% of Bitcoin ETF flows, thereby bringing in a real net purchase volume of approximately $500 million to $1.5 billion within six months. Ethereum is more like a tech asset rather than a macro asset like BTC. Moreover, institutional investors have less interest and buying pressure for Ethereum because its current valuation metrics (such as P/E ratio) are hard for traditional finance allocators to accept. Before any ETF launch, the positioning of Ethereum differs from Bitcoin since this asset has already risen fourfold from its low point while BTC increased by 2.75 times before its ETF launch. Therefore, Kang predicts that ETH's trading price before the ETF launch will be between $3,000 and $3,800 but may fall to between $2,400 and $3,000 after the launch. A drop to lower valuations would shrink the current value of the asset by 30%.