The impending debut of spot Ether (ETH) exchange-traded funds (ETFs) in the U.S., anticipated for next week, is set to drive the price of the second-largest cryptocurrency to unprecedented heights above $5,000, according to Bitwise.

Although the price surge may not be immediate and could initially display volatility due to capital transitioning out of the $11 billion Grayscale Ethereum Trust (ETHE) upon its conversion to an ETF, Bitwise’s chief investment officer, Matt Hougan, expressed confidence in a report released on Tuesday.

“By year-end, I am confident we will witness new all-time highs,” Hougan stated. “Moreover, if inflows surpass the expectations of many market commentators, the price could escalate significantly higher.”

Read more: Ether Spot ETFs: Projected Lower Demand in Comparison to Bitcoin Counterparts

Bitwise highlights that Bitcoin (BTC) has appreciated by approximately 25% since the launch of spot ETFs in the U.S. in January and has surged over 110% since the market began factoring in a potential launch in October of the previous year.

The influx of capital into new Ether spot ETFs is anticipated to exert a more substantial impact compared to Bitcoin due to three structural factors, as outlined by Bitwise. Firstly, Ether’s short-term inflation rate stands at 0%, whereas Bitcoin’s inflation rate was 1.7% at the time of its spot ETF launches, creating a scenario where significant demand meets zero supply. Secondly, unlike Bitcoin miners, ETH stakers are not compelled to sell, with 28% of ETH being staked and thus removed from the market.

The report further projects that Ether spot ETFs will be notably successful, attracting $15 billion in net inflows within the first 18 months of trading.

Steno Research shares a similarly optimistic outlook for Ether, as noted in a report from last month. It predicted that ETH would ascend to at least $6,500 later this year, driven by expected ETF inflows and additional market tailwinds.