An extraordinary forecast regarding the influx of capital into exchange-traded funds (ETFs) focusing on Ethereum within the initial five months has recently come to light. Galaxy Research, in a report unveiled, anticipated that Ethereum ETFs could potentially draw a net inflow of $1 billion monthly, post-approval, as reported by Coindesk on June 27th.
Analyst Charles Yu emphasized, “We anticipate that net inflows into ETH ETFs will range from 20-50% of the net inflows into BTC ETFs within the first five months, with our target set at 30%, equating to $1 billion per month in net inflows.”
On May 23rd, the Securities and Exchange Commission (SEC) greenlit the 19b-4 forms of eight Ethereum ETF issuers, such as Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin. Nevertheless, the trading commencement of these ETFs awaits the SEC’s approval of the S-1 filings.
With the SEC inching closer to potentially approving ETFs linked to Ethereum’s spot price, the landscape for cryptocurrency investors stands on the brink of transformation. The final decision date on approval is projected to be disclosed on July 4, 2024.
Multiple ETF issuers, including industry giants like BlackRock, VanEck, Franklin Templeton, and Grayscale Investments, are striving to secure the SEC’s go-ahead. The launch of Bitcoin spot ETFs earlier this year showcased the triumph and embrace of these products in the market, marking a new chapter following years of negotiations with regulators.
A report, disclosed recently, anticipates that Ethereum ETFs could magnetize $15 billion in net inflows within the inaugural 18 months. Matt Hougan, the Chief Investment Officer at Bitwise, unveiled this forecast.
Hougan stated, “We need not speculate about the potential demand for Ethereum spot ETPs. By examining the data, we can derive insights. Everyone is curious about the net flows that spot ether exchange-traded products (ETPs) will amass. I estimate it to be $15 billion within the initial 18 months. This is not a mere prediction, but what the data points towards.”
The report highlighted that one approach to gauging these possible flows is to evaluate the market caps of the two most prominent cryptocurrencies available.
Disclaimer: The viewpoints and opinions articulated by the author or any individual referenced in this article are solely for informational purposes and do not serve as financial, investment, or any other form of advice. Engaging in cryptocurrency investments or trading exposes one to financial risks.
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