News
Ethereum ETFs are set to capture 20% of Bitcoin ETF investments
- Ethereum ETFs are expected to capture 20% of the current Bitcoin ETF investment flow due to investors’ need for diversification and Ethereum’s unique capabilities.
- Although analysts paint that initial inflows may be lower than those of Bitcoin ETFs, the approval of Ethereum ETFs will be a turning point for the entire cryptocurrency market.
The crypto community is abuzz with excitement as the Ethereum ETF awaits approval once legally approved. The highly anticipated Ethereum ETF could capture up to 20% of current investments flowing into Bitcoin ETFs.
While Bitcoin ETFs have been making headlines, part of the cryptocurrency community thinks that once the Ethereum ETF makes its first appearance, it will be ready to take a bite out of Bitcoin ETF dominance.
Bitcoin ETFs in the United States achieved a substantial inflow of $1.8 billion last week, marking a record 19 consecutive days of notable demand. This momentum has increased speculation in the crypto community. Many believe that the approval of ETH ETFs would see a significant portion of the capital currently flowing into Bitcoin ETFs end up in the pockets of Ethereum ETFs.
Furthermore, others have moved on esteem a range between 10% and 20% of your current Bitcoin ETF investment.
The U.S. Securities and Exchange Commission (SEC) currently holds the keys to approving the ETH ETF. Currently, the SEC is carefully reviewing S-1 registration statements, a crucial step that provides essential information for investors.
Jag Kooner, head of derivatives at Bitfinex, a major cryptocurrency exchange, is confident that Ethereum will bite off a huge chunk of what the Bitcoin ETF currently holds. In a post published on
See more
ETHEREUM ETF CLOSE TO STEALING 10-20% OF BITCOIN ETF FLOWS
– Stain #Ethereum The ETFs, once fully launched, are expected to capture up to a fifth of current inflows to placement #Bitcoin ETFs in the United States, according to an analyst from the main stock exchange, @bitfinex.… https://t.co/SYLCFMAH2T pic.twitter.com/ZpAKYhuewK
— BSCN (@BSCNews) June 10, 2024
Additionally, Jag said the approval of ETH ETFs would offer diversification that meets investors’ needs. By incorporating Ethereum ETFs, investors would be able to mitigate risks by spreading their assets across the crypto ETFs.
Also, Kooner respect the introduction of gold and silver ETFs in the early 2000s. Although gold ETFs began to dominate the market in 2004, the introduction of silver ETFs in 2006 significantly changed the investment models. The demand for silver has grown much faster considering its diverse industrial applications. This new introduction has presented investors with a new opportunity that could similarly occur with the introduction of Ethereum ETFs.
This event means that a similar opportunity could occur with ETH ETFs.
While Bitcoin ETFs are already trading, their counterparts are still awaiting regulatory approval from the SEC. With these obstacles, major financial institutions like Blackrock and Fidelity are eagerly awaiting approval to offer Ethereum ETFs to their customers.
JPMorgan, one of the main financial operators, has rather provided a more cautious forecast for Ethereum ETFs. Other crypto analysts have predicted that Ethereum could see net inflows of between $2 billion and $4 billion for the rest of 2024. This compares to Bitcoin ETFs which currently boast inflows of up to $15.3 billion.
Trade With a value of $3,613.08, which as of this writing marks an increase of 4% in the last 24 hours, the launch of Ethereum ETFs is expected to represent a turning point for the cryptocurrency arena. With Bitcoin ETFs experiencing exponential growth, ETH ETFs are poised to capture a significant portion of the share of Bitcoin ETFs and the overall market.