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Ethereum’s Unique Value Proposition
Asset manager VanEck, which has filed paperwork to list an Ethereum exchange-traded fund (ETF), predicts that ETH ETFs will be much bigger than their Bitcoin peers owing to Ether’s disruptive power and cash flow generated for token holders.
While Ethereum has yielded $3.4 billion in revenue in the last year, VanEck sees that figure hitting $51 billion by 2030.
“We believe ETH is a revolutionary asset with few parallels in the non-crypto financial world. ETH can be thought of as ‘Digital Oil’ because it is consumed by engaging in activity on Ethereum,” the Wednesday report authored by Matthew Sigel, Patrick Bush, and Denis Zinoviev stated. “The Ethereum network is likely to continue its rapid market share growth from traditional financial market participants and, increasingly, Big Tech.”
VanEck portrayed Ethereum as the heart of its financial ecosystem. Its network currently secures more than $90 billion in stablecoins, roughly $7 billion in tokenized assets, and $308 billion in digital assets.
 
“Compared to Web2 applications, Ethereum ($3.4B) generates more revenue than Etsy ($2.7B), Twitch ($2.6B), and Roblox ($2.7B) […] Ethereum is a vibrant economic platform that can be considered a “Digital Mall” whose usership has grown ~1500%, and revenue has surged at a 161% CAGR since 2019,” the report added.
$2 Trillion Market Cap
VanEck also recognizes Ethereum’s potential to disrupt the infrastructure, artificial intelligence, marketing, advertising, social, and gaming industries.
“Should it do so while maintaining its dominant position among smart contract platforms, we see a credible path to $66 billion in fresh cash flow to token holders supporting a $2.2.trillion asset or $22,000 per coin, by 2030.”
$22,000 by 2030 would mark a 487% increase from the current price of $3,845.64. Notably, $22K is VanEck’s base case price estimate. The most optimistic and bearish price projections were $154K and $360, respectively.
Spot Ether ETFs In The Works
The prognostication is also based on the expectation that spot ether ETFs will soon be greenlighted for trading. These new products will boost Ethereum’s appeal among more conservative institutional investors, just as the recently launched spot BTC ETFs drew strong investor demand, amassing a total net inflow of $15 billion since their inception.
“We anticipate that spot ether ETFs are nearing approval to trade on U.S. stock exchanges,” according to the report. “This development would allow financial advisors and institutional investors to hold this unique asset with the security of qualified custodians and benefit from the pricing and liquidity advantages characteristic of ETFs.”
After clearing BTC ETFs in January, the U.S. Securities and Exchange Commission failed to engage much with applicants on ether ETFs. However, that changed when the regulator gave the nod to 19b-4 forms tied to the ETFs. The SEC, however, must first approve S-1 filings before investors can buy the spot ETH products.