Epic inflows forecast for Ethereum ETFs in the first five months

An epic forecast for net inflows into spot Ethereum exchange-traded funds (ETFs) in the first five months has been revealed recently. In a report, Galaxy Research highlighted in its forecast that Ethereum ETFs could see $1 billion in monthly net inflows once approved, according to information published by Coindesk on June 27.

“We expect net inflows into ETH ETFs to be 20-50% of net inflows into BTC ETFs over the first five months, with 30% as our target, implying $1 billion/month in net inflows,” analyst Charles Yu noted.

On May 23, the U.S. Securities and Exchange Commission (SEC) approved Form 19b-4 filings from eight spot Ethereum ETF issuers: Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin. However, the S-1 filings of these ETFs are still awaiting SEC approval for the products to begin trading.

As the SEC moves toward possible approval of ETFs tied to the spot price of Ethereum, the landscape for crypto investors may be about to change. The final decision on approval is expected to be announced as early as July 4, 2024.

Several ETF issuers, including industry giants such as BlackRock, VanEck, Franklin Templeton and Grayscale Investments, are in the race to get the green light from the SEC. The introduction of Bitcoin spot ETFs earlier this year demonstrated the success and acceptance of these products in the market, marking a new era after years of negotiations with regulators.

Report predicts $15 billion in net inflows attracted by Ethereum ETFs in the first 18 months

Spot Ethereum-based exchange-traded funds (ETFs) could attract $15 billion in net inflows in the first 18 months, according to Bitwise chief investment officer Matt Hougan. The forecast was revealed in a recently released report.

“We don’t need to guess about the potential demand for Ethereum spot ETPs. We can just look at the data. Everyone wants to know how much spot ether exchange-traded products (ETPs¹) will attract in net flows. My answer: $15 billion in the first 18 months. This is not a casual guess. That’s what the data suggests,” Hougan wrote in the report.

The text highlighted that one way to estimate these potential flows is by considering the relative market limits of the two largest cryptocurrencies on the market.

Disclaimer:

The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.