Galaxy Digital Forecasts Ethereum ETFs to Garner Approximately 33 of Bitcoin ETFs Investments
1 min read

Galaxy Digital Forecasts Ethereum ETFs to Garner Approximately 33 of Bitcoin ETFs Investments

Galaxy Digital, a cryptocurrency firm, has made projections on how Ethereum (ETH) exchange-traded funds (ETFs) will compare to Bitcoin (BTC) ETFs. Charles Yu, the firm’s vice president of research, has published a research post stating that Ethereum ETFs will likely receive around one-third of the inflows that Bitcoin products will receive. To arrive at this estimate, Yu compared the market capitalization, open interest levels, futures market volume, and total assets under management (AUM) of both assets. The firm believes that the inflows into Ethereum spot ETFs will be approximately three times less than that of US spot Bitcoin ETFs, with a range of two to five times less. In other words, Ethereum spot ETF inflows could be around 33% of the size of US spot Bitcoin ETF inflows, with a range of 20% to 50% in dollar terms. Based on this analysis, if Bitcoin spot ETF inflows reach $15 billion by June 15, it would imply monthly ETH ETF inflows of approximately $1.0 billion for the first five months after the launch of the Ethereum ETF. Yu also suggests that ETH ETFs will have a positive impact on the Ethereum market for three main reasons: expanded accessibility across different wealth segments, increased acceptance through formal recognition by regulators and trusted financial services brands, and a greater understanding of Ethereum by financial professionals, leading to accelerated investments and adoption of the technology.

Leave a Reply

Your email address will not be published. Required fields are marked *