Spot Ethereum ETFs are set to hit U.S. markets next week. They're tipped to be a big deal for crypto.

Bitwise reckons these ETFs will send ether prices soaring. They're eyeing a target above $5,000. That's uncharted territory for the world's second-largest cryptocurrency.

But don't expect fireworks right away. The ride could be bumpy at first.

Bitwise's chief investment officer, Matt Hougan, spilled the beans in a Tuesday report. He's bullish, but cautious.

"By year-end, I'm confident the new highs will be in," Hougan wrote. He added a kicker: "If flows are stronger than many market commentators expect, the price could be much higher still."

Why the optimism? Bitwise points to bitcoin's performance since its ETF debut in January. It's up about 25%.

But ether's got some tricks up its sleeve. Unlike bitcoin, its inflation rate is zilch. Zero. Nada.

Plus, a whopping 28% of ether is locked up in staking. That's a big chunk off the market.

Bitwise is betting big. They're projecting $15 billion in net inflows for ether ETFs in their first 18 months.

They're not alone in their bullish stance. Steno Research is singing from the same hymn sheet. Last month, they predicted ether would hit at least $6,500 later this year.