The crypto community is eagerly awaiting the launch of Ethereum-based exchange traded funds (ETFs) in the US. Analysts are confident that this will attract massive investment into the market. Bitwise Chief Investment Officer Matt Hougan predicts significant inflows into Ethereum-based ETFs in the first months of trading. He claims that “Ethereum-based ETFs will raise $15 billion within their first 18 months on the market.” 📈
Hugan's forecast is based on a thorough analysis of available data, including comparisons of Ethereum (ETH) and Bitcoin (BTC) capitalization, the international crypto ETF market, Grayscale's Ethereum Trust conversion, and Bitcoin-based "carry trade" ETFs.
Investors are expected to invest in Bitcoin and Ethereum ETFs in proportion to their capitalization.
Hugan explained that "US investors have $56 billion invested in Bitcoin ETFs," and he expects that figure to reach $100 billion by the end of 2025.
Using $100 billion as a benchmark and subtracting Grayscale's $10 billion conversion of Ethereum Trust into the ETF, Ethereum-based ETFs could see a net inflow of $25 billion.
Ultimately, Hougan believes $15 billion will be invested in Ethereum ETPs by the end of 2025.
Meanwhile, potential issuers of Ethereum-based ETFs continue to complete their pre-launch registrations following their approval by the Securities and Exchange Commission (SEC) on May 23.
Ethereum price finds support around $3,300.