Analysts at K33 Research estimate that over the first five months of trading, net inflows into new spot Ethereum exchange-traded funds in the United States could range from $3.1 billion to $4.8 billion.
According to a report released on Tuesday by K33 Senior Analyst Vetle Lunde and DeFi analyst David Zimmerman, the experts’ projections are predicated on market capitalization comparisons between Bitcoin and ether.
This prediction is based on the U.S. Securities and Exchange Commission’s (SEC) May 23 acceptance of 19b-4 forms for eight spot Ethereum ETFs from companies including Fidelity and BlackRock.
The report compares the market sizes of Ethereum and Bitcoin, pointing out that since the apex of the cryptocurrency bull market in November 2021, 3.3% of Ethereum’s circulating supply has been held in investment vehicles.
The experts also draw comparisons between this trend with the drop of Bitcoin held in investment vehicles before the excitement surrounding the launch of spot Bitcoin ETFs.
Except for U.S. spot Bitcoin ETFs, Ethereum exchange-traded products (ETPs) possess 28.2% of the assets under management held by their Bitcoin counterparts globally. In Canada and Europe, this percentage is almost 33%.
Nevertheless, just 5% of Bitcoin ETFs are Ethereum futures ETFs in the United States. Despite this, the analysts contend that there is a sizable institutional demand for ETH in the US, as evidenced by the CME’s ETH open interest, which is presently 22.9% of the size of BTC.
K33 Research predicts that the spot Ethereum ETFs may accumulate between 800,000 and 1.26 million ETH in their first five months, or between 0.7% and 1.05% of the circulating ether supply, based on the success of the spot Bitcoin ETFs.
According to analysts, the planned Ethereum ETFs from Fidelity and BlackRock may raise the price of ETH this summer. They anticipate high investor interest despite the lack of staking rewards that are common in ETH ETFs offered in Europe and Canada. Before trading may begin, issuers must receive approval for their S-1 registration. Investors should stay tuned for updates.
It’s crucial to remember that before trading may begin, issuers must receive approval for their S-1 registration. Investors should stay tuned for updates. Consequently, market players and investors are excitedly anticipating more advancements in this area.
Also Read: Franklin, VanEck, Invesco Galaxy File for Spot Ethereum ETFs; Franklin Sets 0.19% Fee
