Ethereum is the blockchain protocol for ether — the second-largest cryptocurrency behind bitcoin. Beyond that, Ethereum serves as the foundation for a slew of decentralized finance (DeFi) currencies.
Bottom line: Ethereum may not be as big as bitcoin, but it’s a vital part of the broader ecosystem, and as such, it carries with it its own credible investment thesis. Investors who don’t want to own Ethereum directly in a crypto brokerage account but still want to get in the game can consider the Grayscale Ethereum Trust (ETHE). ETHE follows the CoinDesk Ether Price Index.
For patient, risk-tolerant investors, ETHE might be worth a look today because some market observers are forecasting big upside ahead for Ethereum. Geoffrey Kendrick, the head of crypto research at Standard Chartered, notes that while many market participants are comparing the current state of the crypto market to the tech bubble of 2000, it could pay to take a long-term view of digital assets.
“If we fast-forward five or 10 years, there’s a very, very constructive backdrop here,” Kendrick said in an interview with Insider. “And the use cases in things like ethereum, for example, haven’t really even played out yet at all. So my backdrop is very, very positive.”
Despite recent weakness in the crypto market, Kendrick is bullish on the end of 2022 possibilities for bitcoin and ether, forecasting jumps to $100,000 and $10,000, respectively. Assuming his forecasts are accurate, bitcoin would have to more than double from current levels, while ether would need to more than triple from the May 1 price.
Over a longer time horizon, Kendrick sees ether soaring to $35,000, or more than 10x where it currently resides.
“There’s been a number of market commentators that are saying that, like in previous bitcoin halving cycles, we’re now getting into the second half of that, and — in previous cycles — that has been a bearish signal,” Kendrick said to Insider. “I disagree with that logic.”
As noted above, the crypto expert’s forecasts on both bitcoin and ether are significantly higher than where those assets reside today. Investors who want to participate in that potential appreciation without deciding between the two largest digital currencies can consider the Grayscale Digital Large Cap Fund (GDLC). That index fund allocates 90% of its total weight to bitcoin and ether.
Specific to ether, the upcoming merge could be a catalyst for that asset.
“The event, which is set to reduce the number of new ether tokens that enter circulation, is critical for the crypto market and may lead to a wave of new investment, Kendrick said. After that, he said, ethereum may take the title of top token,” adds Insider.
For more news, information, and strategy, visit the Crypto Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.