HomeCrypto UpdatesVanEck's Prediction of ETH Reaching $22,000 Boosts Portfolio Value

VanEck’s Prediction of ETH Reaching $22,000 Boosts Portfolio Value

Published on


Analyzing the Impact of Including Ethereum and Bitcoin in Investment Portfolios: VanEck Research Study

VanEck Research recently conducted a study analyzing the impact of including Ethereum (ETH) and Bitcoin (BTC) in traditional 60/40 investment portfolios from September 2015 to April 2024. The results of the study revealed that incorporating up to 6% of these cryptocurrencies in a portfolio can enhance its risk-adjusted return or Sharpe ratio while incurring minimal incremental drawdown.

According to VanEck, a portfolio consisting of 70% BTC and 30% ETH formed an optimal risk-adjusted return for a pure crypto portfolio. Additionally, VanEck has raised its 2030 price target for ETH to $22,000, citing factors such as the anticipation of spot ether ETF approvals, scaling progress, and analysis of on-chain data.

The study also highlighted that the Ethereum network continues to gain market share from traditional financial institutions and Big Tech, driven by its appeal to entrepreneurs. VanEck predicts a path to $66 billion in free cash flow to token holders, supporting a $2.2 trillion asset, or $22,000 per coin, by 2030 if Ethereum maintains its dominant position among smart contract platforms.

By incorporating the optimal crypto portfolio of 28.6% ETH and 71.4% BTC into a 60/40 portfolio, investors can enhance returns with varying risks. The study found that as the risk increased with each holding, the returns adjusted for risk followed a nearly straight line, indicating that higher exposure to cryptocurrencies resulted in better returns.

However, investors should be aware of risks associated with investing in cryptocurrencies, including dependence on speculative information, regulatory uncertainties, interest rate risks, competition risks, and geopolitical risks. Despite these risks, the study suggests that including ETH and BTC in investment portfolios can offer opportunities for enhanced returns.

Latest articles

What is causing the decrease in Solana (SOL) price today?

Solana's SOL Price Drops by 2% in 24 Hours: What's Driving the Correction? The...

Analyst Forecasts a “Very Bullish” Bitcoin Scenario with Potential Price Surge to $80,000

Crypto Analyst Predicts Ultra Bull Scenario for Bitcoin, Forecasts Price Rally Above $80,000 Crypto...

Ethereum Price Forecast Soars as SEC Greenlights Ethereum ETFs

Author Section with Last Updated Information and Image for Ethereum Price Prediction as...

Advancing Web3 with Bitget Wallet

The Evolution of Bitget Wallet: A Comprehensive Web3 Ecosystem Platform Bitget Wallet is making...

More like this

What is causing the decrease in Solana (SOL) price today?

Solana's SOL Price Drops by 2% in 24 Hours: What's Driving the Correction? The...

Analyst Forecasts a “Very Bullish” Bitcoin Scenario with Potential Price Surge to $80,000

Crypto Analyst Predicts Ultra Bull Scenario for Bitcoin, Forecasts Price Rally Above $80,000 Crypto...

Ethereum Price Forecast Soars as SEC Greenlights Ethereum ETFs

Author Section with Last Updated Information and Image for Ethereum Price Prediction as...
bitcoin
Bitcoin (BTC) $ 117,740.55
ethereum
Ethereum (ETH) $ 3,807.24
xrp
XRP (XRP) $ 3.12
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 793.02
solana
Solana (SOL) $ 179.41
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,803.35
dogecoin
Dogecoin (DOGE) $ 0.222267
tron
TRON (TRX) $ 0.326779