Andrew Kang, a prominent venture capital investor, has made a surprising prediction that the approval of Ether exchange-traded funds (ETFs) in the United States may lead to a significant price drop of up to 30%. This contrarian view goes against the general sentiment of investors who believe that ETF approval will boost Ether's price.

Kang, a founder and partner at Mechanism Capital, a cryptocurrency-focused venture capital firm, shared his thoughts on social media. He argued that while the approval of spot Bitcoin ETFs opened the door to new buyers and allocations, the impact of Ether ETFs is less clear-cut. Kang pointed out that both Bitcoin and Ether have returned around 4.0x from their cycle bottoms, leaving limited upside potential for Ether unless it improves its economics.

The Mechanism Capital executive highlighted several reasons for his bearish prediction. He noted that Ether attracts less institutional interest than Bitcoin and lacks impressive network cash flows. Additionally, Kang believes that there is less incentive for investors to convert their Ether into ETF format, unlike Bitcoin, which has become a globally validated portfolio asset with structural accumulators like MicroStrategy, Tether, and high net worth individuals.

While Ether also has some structural accumulators, Kang believes the magnitude is significantly lower than Bitcoin's. He emphasized that the crypto community's high mind share and buy-in of Ethereum do not translate to broader acceptance among non-crypto native capital groups. Kang's prediction suggests that the approval of Ether ETFs may not have the same positive impact as Bitcoin's, potentially leading to a price drop.