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Ethereum ETFs Should Capture 33% of Bitcoin Inflows, Says Galaxy Digital
- Galaxy Digital expects Ethereum ETFs to attract about a third of the inflows seen by Bitcoin ETFs.
- The company bases this estimate on a comparison of market capitalization, open interest, futures volume, and AUM.
Galaxy Digital predicts that Ethereum (ETH) exchange-traded funds (ETFs) will attract about a third of the inflows of Bitcoin (BTC) ETFs. 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 for Ethereum and Bitcoin. The research indicates that Ethereum ETFs will experience inflows that are one-third of those experienced by spot Bitcoin ETFs in the United States. This means that Ethereum ETF inflows represent 33% of Bitcoin ETF inflows, with a range of 20% to 50%.
Yu Projects: Monthly Ethereum ETF Inflows Could Reach $1 Billion After Launch
In the Search PostYu says that if we multiply this multiple by the $15 billion in spot Bitcoin ETF inflows through June 15, monthly Ethereum ETF inflows could be around $1 billion in the first five months after approval and launch. This estimate is between $600 million and $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 customers of different asset classes. Through formal approval by regulatory bodies and the use of well-known financial services companies, the acceptance of ETFs will be improved.
They will offer greater access to both retail and institutional investors and increase distribution across multiple investment channels.
Additionally, ETFs can help Ethereum integration into diversified investment portfolios and strategies. Increased awareness among financial personnel of how Ethereum works is expected to lead to faster capital and integration. The listing of Ethereum ETFs is a significant development in the cryptocurrency market, indicating growing institutional demand and regulatory approval.
ETF Investment Potential
Galaxy Digital’s forecast shows how Ethereum could establish itself in financial markets in the same way as Bitcoin. The expected inflows into Ethereum ETFs paint a picture of increased investment in the asset in the future and its growing importance in the global economy.
With the expected capital inflows through ETFs, The market could experience an increase in trading, which could create further developments within the Ethereum platform. This growth could benefit the Ethereum ecosystem and pave the way for new developments and application uses, thus expanding the use of Ethereum.
The anticipation of the approval of Ethereum ETF spot trading has already had a positive effect on the price of Ethereum. However, the actual launch is expected to have a greater impact as a result.
In a recent report by K33 Research, a cryptocurrency analytics firm, the ETH ETF could attract as much as 0.75-1 percent of the total Ethereum in circulation in the first five months after launch. This is in line with Gemini’s forecast of $5 billion invested in Ethereum ETFs in the first six months.
Ethereum price has surged to the $3,000 level as more investors await ETF approval. At the time of writing, Ethereum (ETH) is trading at $3,061.99, up 4.36% over the past 24 hours.
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