Key Points
- Bloomberg’s Eric Balchunas predicts that Ethereum ETFs could grab 20% of Bitcoin ETFs.
- He anticipates a huge win and a successful launch of ETH ETFs.
Bloomberg’s Eric Balchunas has just changed a previous prediction that he made regarding Ethereum ETFs.
He shared a post on X, saying that ETH ETFs could divide the success of Bitcoin ETFs by 5 when it comes to expectations regarding flows, volume, media, and everything else related to the products.
He expected ETH ETFs to grab 20% of what Bitcoin ETFs managed to accomplish and this would mean a huge win and successful launch for the products.
10 may be a bit much.. but I’d at least divide by 5 when it comes to expectations around the Ether spot ETFs re flows/volume/media/everything relative to spot bitcoin ETFs. That said, grabbing 20% of what they got would be huge win/successful launch by normal ETF standards. https://t.co/QDenr3jY2B
— Eric Balchunas (@EricBalchunas) May 29, 2024
He previously said that he was anticipating a “carbon copy horse race” for the crypto products similar to Bitcoin ETFs.
He said that he is expecting lower volumes, highlighting that he would divide everything that the industry saw with Bitcoin ETFs by about 10.
Balchunas said that the market could see maybe $1 billion or 2 in the first couple of weeks following the products’ launch.
ETH share vs. BTC share
Balchunas also made a comparison via X between Ethereum and Bitcoin shares in different spots.
He noted that the poor showing of the ETH futures is a big part of his calculus, and the stronger showings in Europe have him splitting differences with a final prediction of 20% share.
In his thread, Balchunas also mentioned silver ETFs and gold ETFs where silver has a 15% share. He compared Ethereum to silver, saying that a lot of people will not feel the need to go beyond Bitcoin or gold for their crypto or precious metals allocation.
I’m also looking at silver ETFs vs gold ETFs where silver has 15% share.. as I think ether will be seen similar to silver. Many won’t feel need to go beyond bitcoin/gold for their crypto/precious metals allocation. pic.twitter.com/VIj3gh4jMl
— Eric Balchunas (@EricBalchunas) May 29, 2024
BlackRock’s Bitcoin ETF IBIT is king
Blachunas also brought up BlackRock’s Bitcoin ETF, IBIT, saying that the crypto product is now the king of the ETF category and it will probably remain for decades.
It’s official now. $IBIT is king of the category and prob will be for decades. The low fee + big boy liquidity + iShares brand name is just too powerful (altho there’s plenty of food for everyone). https://t.co/gfeicUz3Iy
— Eric Balchunas (@EricBalchunas) May 29, 2024
He mentioned the low fee and big liquidity, along with the brand name of the company.
Earlier today, Bloomberg noted that BlackRock’s iShares Bitcoin Trust is now the largest fund for BTC in the world, amassing close to $20 billion in total assets since the US SEC approved the listing of the crypto products at the beginning of 2024.
IBIT held $19.68 billion in BTC on May 28, surpassing the $19.65 billion Grayscale Bitcoin Trust, according to official data.
