Markets
Ethereum ETFs Expected to Attract $569 Million Monthly
The approval of Ethereum spot ETFs by the US Securities and Exchange Commission (SEC) was a big step for the cryptocurrency market.
The regulator’s decision followed the previous approval of Bitcoin spot ETFs, which led to a massive flow of capital into BTC.
Ethereum ETFs Could See Massive Inflows After Launch
Prominent crypto researcher Bobby Banzai predicts monthly inflows of $569 million for Ethereum ETFs once negotiation begins. Its forecast is based on international ETF values and the Chicago Mercantile Exchange (CME). futures open interest data, which shows that the value of ETH is around 19% against BTC.
“With Bitcoin flows totaling $13.6 billion as of May 27, after 137 days of trading, the implied value of monthly payments ETH ETF flows are US$569 million”, the researcher highlighted.
Bobby Banzai noted that the success of Bitcoin ETFs has encouraged issuers to promote Ethereum ETFs. Companies like Hashdex, VanEck, and Bitwise have already published high-quality announcements for their BTC ETFs. A similar marketing effort for ETH ETFs could lead to substantial inflows. Bloomberg analyst Eric Balchunas suggests that the recently approved instruments could capture up to 20% of the Bitcoin ETF market.
See more information: Ethereum ETF explained: what it is and how it works
However, JPMorgan analysts warn that the market’s initial reaction could be negative, predicting that ETH ETFs could see inflows of between $1 billion and $3 billion in 2024 if launched before the end of the year. They argue that without betting incomeETH ETFs may be less attractive.
Investors who buy, hold and stake ETH You can earn rewards, which provide extra income. In contrast, non-staking spot Ethereum ETFs offer exposure to ETH prices without these benefits.
See more information: How to invest in Ethereum ETFs?
However, Ethereum’s value, supported by its utility in transactions, smart contracts and decentralized applications (DApps), sets it up for substantial expansion. Industry experts like Larry Fink, co-founder of BlackRock, and CEO of MicroStrategy michael saylor celebrated the approval of ETFs as a significant development.
“It appeared that Bitcoin would be the only asset securitized and offered as an ETF in cash by the Wall Street establishment and would spread as the only legitimate cryptocurrency,” Michael Saylor stated.
As optimism grows, the price of Ethereum has shown strength, trading at $3,815 at the time of writing, a 33% increase since May 15. minimum of six yearsanticipated demand for Ethereum ETFs could further boost their value.
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