Key Points
- Ethereum ETFs could attract up to $4.8 billion in inflows in the first five months.
- The estimate is higher compared to JPMorgan’s $3 billion forecast.
Ethereum ETFs that can directly hold ETH are going live soon in the US with the latest predicitons claiming that they will be launched this month.
New predictions estimate the amount that could flow in the crypto products in the first months post-launch.
ETH ETFs could attract up to $4.8 billion in inflows in the first 5 months
According to a new report coming from K33 Research, ETH ETFs could attract up to $4.8 billion in inflows in the first five months post-launch.
The company made this prediction based on a comparison between the assets under management in existing ETH-based ETPs around the globe to similar BTC products and the amount of open interest (OI) in futures contracts on the Chicago Mercantile Exchange (CME). This is the preferred marketplace of institutional investors.
In their June 4 report, K33 Research revealed that ETH’s OI on CME was 23% of the size of BTC futures, but it has seen an average share of 35% of BTC futures since ETH futures started trading on CME back in 2021. This shows a high institutional demand for ETH in the US, according to the report.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/N6GP7QM5ZBBQ5LDRB235NP2WQA.png "Ethereum ETFs Could Attract Up To $4.8B Inflows In 5 Months Post Launch 4")
K33 Research applied the ratios to the almost $14 billion inflows in BTC ETFs recorded by the time of their report and put the estimated ETH ETFs inflows between $3 billion and $4.8 billion within the first five months.
This estimate was higher compared to the one made by JPMorgan of $3 billion.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/Z2TTW2A5TZGBLOKQSTMEUYAEJA.png "Ethereum ETFs Could Attract Up To $4.8B Inflows In 5 Months Post Launch 5")
Vetle Lunde, senior analyst at K33 Research, said that as seen in Bitcoin, such a huge supply absorption shock could lead to price appreciation in ETH.
At the moment of writing this article, ETH is trading above $3,800, up by 2% today.
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After Bitcoin ETFs started trading back in January 2024, BTC’s price rallied around 60% to record highs. K33 analysts predict that with the launch of ETH ETFs, ETH’s price would start to outperform BTC.
Last month, Bloomberg’s Eric Balchunas said that ETH ETFs could grab 20% of BTC ETFs in flow volume.
In May, the US SEC approved filings for Ethereum ETF issuers in a sudden move that surprised the market.
