Just over a week ago, 9 Ethereum spot ETFs were launched in the United States. A Sygnum Bank analyst estimates that incoming investments in these assets would reach nearly $10 billion within a year, which could have a significant impact on the price of Ether (ETH).
Ethereum Spot ETFs Set to Ride the Bitcoin Spot ETF Hype
According to Katalin Tischhauser, head of investment research for Sygnum Bank and a former executive at Goldman Sachs, Exchange-traded funds through Ethereum spot ETFs could accumulate up to $10 billion in assets under management by July 2025.
To predict this amount, the analyst relied on her forecasts for Bitcoin spot ETFs. In January, Katalin Tischhauser had predicted that Bitcoin spot ETF inflows would be in the order of $30-50 billion in the first yearand that several spot Ethereum ETFs would be launched in the United States during the year.
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So far, the second prediction has proven correct with the launch on July 23, of 9 Ethereum ETFs spot on US soil. Regarding the first prediction, the estimate could even be lower than expected, as the craze around spot Bitcoin ETFs was strong in the first half of the year.
Katalin Tischhauser explained her reasoning behind the net inflows into Ethereum spot ETFs:
” With Ethereum's market cap being about a third of Bitcoin's, we expect relative inflows to be in the range of 15-35% relative to Bitcoin, with a resulting forecast of $5-10 billion in the first year. “.
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Advantages over Bitcoin that could interest investors
For the head of investment research at Sygnum Bank, ETFs in general have significant advantages for investors. Indeed, these relatively transparent investment products remain tradable on the stock exchange, just like shares, and allow risks to be spread. Thus, investors can quickly and easily build a portfolio covering many asset classes.
Also, spot Ethereum ETFs would offer some advantages over spot Bitcoin ETFas Katalin Tischhauser explains:
“A familiar regulated product such as ETFs makes Ether easily accessible to investors interested in simple investment exposure. Ethereum, as the leading smart contract platform, is arguably one of the most exciting blockchains for the cryptocurrency ecosystem due to its multitude of applications and use cases.”
Despite the launch of Ethereum spot ETFs in the United States, the ETH course did not jump, contrary to what may have been known the bitcoin price at the beginning of the year, following the launch of Bitcoin spot ETFs. Katalin Tischhauser believes that the market did not anticipate a hike as it expected Ethereum spot ETF inflows to disappoint.
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Finally, the analyst believes that the price of ETH is still likely to rise. On July 31, after 4 consecutive days of net outflows, Ethereum Spot ETFs Are Finally Out of the Red. If this positive trend were to be confirmed in the coming months, Spot Ethereum ETFs Could Become a Powerful Driver for ETH Price.
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Source : Cointelegraph
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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