- Galaxy Digital predicts Ethereum ETFs will attract about one-third of the inflows seen by Bitcoin ETFs.
- The firm bases this estimate on comparisons of market cap, open interest, futures volume, and AUM.
Galaxy Digital anticipates that Ethereum (ETH) exchange-traded funds (ETFs) will attract roughly one-third of the inflows that Bitcoin (BTC) ETFs do. This projection comes from a new research post by Charles Yu, vice president of research at Galaxy Digital.
Yu’s analysis focuses on market capitalization, open interest levels, futures market volume, and total AUM of Ethereum and Bitcoin. The research indicates that Ethereum ETFs will experience inflows that are a third of what US spot Bitcoin ETFs will experience. This means that Ethereum ETF inflows stand at 33% of Bitcoin ETF inflows, with a variation of between 20% and 50%.
Yu Projects Monthly Ethereum ETF Inflows Could Hit $1 Billion Post-Launch
In the Research post, Yu says that if we multiply this multiple by the $15 billion of Bitcoin spot ETF inflows through June 15, monthly Ethereum ETF inflows could be about $1 billion in the first five months after approval and launch. This estimate is between $600 million to $1. 5 billion per month.
Source: Galaxy Digital
According to Yu, the listing of Ethereum ETFs will have the following positive effects on the Ethereum market. First, ETFs will increase the level of investment penetration among clients of different wealth statuses. Through the formal approval by the regulators and the use of well-known financial service companies, acceptance of ETFs will be improved.
They will provide increased access for both retail and institutional investors and increase distribution through more investment avenues.
Additionally, ETFs can aid the integration of Ethereum into diversified investment portfolios and strategies. It is expected that the increased awareness among the financial personnel of the workings of Ethereum will lead to faster capital and integration. The listing of Ethereum ETFs is a significant development in the crypto market, which indicates increasing institutional demand and regulatory approval.
ETF Investments Potential
Galaxy Digital’s forecast shows how Ethereum could establish itself within the financial markets in the same way as Bitcoin. The anticipated inflows into the Ethereum ETFs paint a picture of more investment in the asset in the future and its increasing importance in the global economy.
With the anticipated inflow of capital through ETFs, the market might experience increased trading, which may create more developments within the Ethereum platform. This growth could benefit Ethereum’s ecosystem and pave the way for new application developments and uses, thus expanding Ethereum’s usage.
The anticipation of the approval of spot Ethereum ETF trading has already had a positive effect on Ethereum’s price. However, the real launch is predicted to have a greater impact as a result.
In a recent report by K33 Research, a crypto analytics firm, the ETH ETF could pull as much as 0. 75 to 1 percent of the total Ethereum in circulation in the first five months of launch. This is in line with Gemini’s prediction of $5 billion being invested in Ethereum ETFs in the first six months.
The price of Ethereum has risen to the $3,000 level as more investors await the approval of an ETF. At the time of writing, Ethereum (ETH) is at $3,061. 99, which is a 4. 36% uptick in the last 24 hours.
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