EMJ Capital Predicts US Spot Ether ETF Staking Could Boost ETH to $1.5M, Sets $10,000 Target by March 2026

EMJ Capital founder Eric Jackson has predicted that Ether (ETH) could eventually hit $1.5 million per token. He claimed that the second-largest cryptocurrency by market capitalization is “underpriced” and its next price gain could catch the market “off guard”.

In a series of X posts on Sunday, Jackson said Ethereum is “quietly becoming” the dominant rail system for transacting in crypto with deflationary economics. He added that the potential approval for staking in the US for spot Ether exchange-traded funds (ETFs) and the adoption of the Ethereum blockchain by large-scale financial institutions could be the catalyst for the crypto’s price to increase tenfold over the coming years.

Ethereum Price Could 10x With ETF Staking Approval. It has the Potential to become an Institutional-grade yield Product, Says Analyst

The US Securities and Exchange Commission greenlit the trading of Ether-backed ETFs in July 2024. Since then, the 12 funds have attained a market cap of $12.97 billion and hold $12.06 billion worth of ETH in assets under management (AUM).

BlackRock’s iShares Ethereum Trust ETF (ETHA) leads the charts in AUM, with $5.34 billion, followed by the Grayscale Ethereum Trust (ETHE) with $3.46 billion, and the Bitwise Ethereum ETF (ETHW) with $349.49 million in assets completing the top 3. Other notable funds among the US Spot Ether ETFs include VanEck Ethereum ETF (ETHV), Franklin Ethereum ETF (EZET), Invesco Galaxy Ethereum ETF (QETH), and 21Shares Core Ethereum ETF (CETH).

Jackson said that the real catalyst for the ETFs still lies ahead, which is the staking approval that is widely expected by October. He added that once Ether becomes a productive, staked asset within an ETF wrapper, then it is no longer just “digital oil” but an institutional-grade yield product.

The EMJ Capital head noted that the ETF’s performance would compound Ethereum’s “already deflationary economics” as its circulating supply would be cut with flows from traditional finance and increased staking demand.

In May, ETF provider REX Shares filed two spot ETFs, one tracking Ether and the other backed by Solana (SOL), with staking properties. The SEC is expected to make a final decision on it by the end of the third quarter. BlackRock’s head of digital assets, Robbie Mitchnick, said the company’s ETHA Ether ETF was a “tremendous success” but acknowledged it is “less perfect” without the staking feature.

EMJ Capital Analysts Target $10,000 to $15,000 ETH by March 2026 if Spot Ether ETFs Outperform Staking Expectations

Jackson believes that ETH could eventually be valued at $1.5 million per token if the number of companies that utilize the blockchain continues to grow. He highlighted that USDC stablecoin issuer Circle Internet Group, crypto exchange Coinbase, e-commerce giant Shopify, and brokerage platform Robinhood all use or allow their users to access the Ethereum network. The analyst said that if traders bet on the growth of those firms and some parts of mainstream commerce move away from fiat into crypto, then Ethereum would skyrocket.

He is confident that Ether can easily cross the million-dollar mark if global commerce pivots to Ethereum.

The base case scenario, seen by analysts at EMJ Capital, is for the crypto to hit a $10,000 price by the end of the current bull cycle, which is expected to run until March 2026. Jackson added that his firm’s bull case has the crypto asset aiming for $15,000 this cycle, under the condition that adoption of Ethereum-based layer 2 networks and spot ETH ETF inflows beat expectations on staking approval.

Nasdaq-listed SharpLink Bought $48.85M Worth of ETH for its Treasury, Becomes Second-Largest Corporate Ethereum Holder

Meanwhile, several publicly-listed companies have been adopting Ether as part of their corporate treasury strategy. On Sunday, Nasdaq-traded sports betting and online performance marketing firm SharpLink Gaming (SBET) acquired another 16,374 ETH for $48.85 million.

According to data from Arkham Intelligence, the Ether was transferred to a wallet owned by SharpLink from digital asset management firm Galaxy Digital’s over-the-counter (OTC) trading desk. On Friday, the world’s largest publicly traded Ethereum treasury firm bought 21,487 ETH, worth $65.5 million, from the Ethereum Foundation.

SBET shares rallied on the back of these buys, closing the July 11 trading session at $21.65, up 17.5% on the day, and Sunday’s trading on Blue ATS at $23.20, up 7.16% for the session. This performance also coincided with the price of ETH climbing above the $3,000 mark for the first time since March.

The Minneapolis-based affiliate marketing firm for gambling and sports betting sites is one of the firms that have attempted to reimagine themselves as crypto treasury entities this year, following GameStop and Metaplanet.

SharpLink announced plans to aggressively pivot to an Ethereum treasury strategy in May after a $425 million private placement made by Ethereum infrastructure firm Consensys, the developers of the MetaMask wallet. That deal saw Ethereum co-founder and Consensys CEO Joseph Lubin become the chairman of SharpLink’s board of directors.

Under Lubin’s mentorship, SharpLink now views itself as both a treasury investor in Ethereum and a steward of its growing DeFi ecosystem. He said in a Friday statement that the Ether acquisition isn’t a trade, but a commitment to the company’s long-term vision to acquiring, staking, and staking the cryptocurrency as “responsible industry stewards, removing supply from circulation, and reinforcing the health of the Ethereum ecosystem.”

50 Corporate Treasuries Hold Over $4 Billion in Ether, Equivalent to 1.11% of Circulating Supply

According to data from Strategic Ethereum Reserve, the company now holds 216,000 ETH, worth $656.5 million, in its balance sheet, only behind the non-profit Ethereum Foundation, which has 242,500 ETH, valued at $737.2 million at current rates. 

Other prominent Ethereum treasury firms include PulseChain SAC (166.3K ETH), Coinbase (137.3K ETH), Golem Foundation (101.2K ETH), and Bit Digital (100.6K ETH). The U.S. government is also a major holder of Ether, with wallets controlled by the Department of Justice (DoJ) in possession of about 60,000 ETH, valued at $182.3 million, that were seized as part of civil and criminal proceedings.

Data shows that 50 private firms hold 1.34 million ETH, worth $4.07 billion, in their reserves. This is equivalent to 1.11% of the total 120.71 million Ether currently in circulation.

At the time of writing, Ether (ETH) is trading at $3,050, up 3.47% in the last 24 hours.