Here’s How Many Inflows Ethereum ETFs Are Expected to Attract

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As a seasoned financial analyst with over a decade of experience in the markets, I have witnessed the evolution of exchange-traded funds (ETFs) and their impact on various asset classes. Based on the latest reports from Eric Balchunas and James Seyffart, well-known ETF analysts, I am bullish on Ethereum ETFs and believe they will attract significant inflows in the coming year.

Based on the analysis of Eric Balchunas and James Seyffart, two renowned ETF experts, it is anticipated that Ethereum exchange-traded funds could draw in approximately $6 billion in investments during their inaugural year of operation.

Approximately 20% of the total inflows drawn by highly successful Bitcoin ETFs since their debut in January can be estimated from this amount.

Analysts are equally confident that BlackRock and Fidelity will prevail in the Ethereum ETF market, despite robust competition.

Where do other analysts stand? 

According to a report from U.Today, JPMorgan forecasts that Ethereum Exchange-Traded Funds (ETFs) could underperform with relatively low investment flows. The financial institution estimates that these ETFs may draw in around $1 billion in assets this year.

 

While traditional firms may be more cautious, there is a greater sense of optimism among crypto-native companies. Analysts at Mike Novogratz’s Galaxy Digital anticipate that these ETFs could attract approximately $1 billion in new funds each month. In contrast, crypto exchange Gemini projects that they will see inflows totaling around $5 billion within a six-month timeframe.

Ethereum price down 

During this interval, Ethereum-based ETFs have commenced trading in the United States. Within the initial 45 minutes of trade, these ETFs reportedly generated $200 million in transaction volume. Balchunas expressed optimism regarding the current market interest in a social media update.

The Ethereum sale followed its launch, resulting in a decline by 2%. At present, Ethereum is being traded at $3,436 based on information from CoinGecko.

After the introduction of Bitcoin ETFs in January, the price of Bitcoin failed to keep pace. Nevertheless, it surpassed its previous peak in March as a result of substantial investments poured into these financial instruments.

However, it is yet to be seen whether Ethereum ETFs could generate the same level of enthusiasm.

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2024-07-23 19:05