The launch of Ethereum spot exchange-traded funds (ETFs) could bring significant capital inflows, according to Matt Hougan, Chief Investment Officer of Bitwise. Hougan projects that these ETFs could attract $15 billion in net flows within the first 18 months of trading. This forecast is based on an analysis comparing Ethereum's market capitalization to Bitcoin's, along with insights from the international crypto ETP market and Grayscale's Ethereum Trust conversion.
Hougan expects investors to allocate funds to Bitcoin and Ethereum ETFs proportionally to their market caps, with Ethereum potentially capturing a significant share. He also notes that the total assets under management for spot Bitcoin ETFs in the U.S. could reach $100 billion by 2025, providing a benchmark for Ethereum's potential.
The approval of these ETFs by the U.S. Securities and Exchange Commission (SEC) could trigger this growth, with firms actively finalizing their registrations. Investment manager VanEck has recently filed necessary documents, moving closer to launching its spot Ether ETF.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
