ETFs
Ethereum ETFs Expected to Attract About 33% of Bitcoin ETF Inflows: Galaxy Digital
Crypto firm Galaxy Digital plans how Ethereum (ETH) exchange-traded funds (ETFs) will compete with Bitcoin (Bitcoin) AND F.
According to a news research position According to Charles Yu, the firm’s vice president of research, Ethereum ETFs will see about a third of the inflows of similar Bitcoin products.
To arrive at their estimate, Yu explains that the firm compared the market capitalization of the two assets, open interest levels and volume in the futures markets, and the total assets under management (AUM) of existing funds.
“Based on the above, we believe that spot Ether ETF inflows will be approximately 3x smaller than spot Bitcoin ETF inflows in the US (in line with market cap multiple) with a range of 2x to 5x. In other words, we believe spot Ether ETF inflows could be 33% of the size of spot Bitcoin ETF inflows in the US with a range of 20% to 50% of the size in dollar terms.
Applying this multiple to $15 billion in spot Bitcoin ETF inflows through June 15, this would imply monthly ETH ETF inflows of approximately $1.0 billion for the first five months following the approval and launch of the Ether ETF (estimated range: $600 million to $1.5 billion per month)… »
Source: Galaxy Digital
Yu further asserts that ETH ETFs should have an overall positive impact on ETH markets for three main reasons:
“(i) expanded accessibility to all wealth segments,
(ii) greater acceptance through official recognition by regulators and trusted financial services brands. An ETF enables greater reach for individuals and institutions, offers broader distribution through more investment channels, and can support the case for using ether in a portfolio for more investment strategies.
“Additionally, a better understanding of Ethereum by financial professionals would ideally translate into accelerated investment and adoption of the technology.”
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