Recently, Gemini analysis showed that an Ethereum ETF could attract billions in investments allowing the price of ETH to skyrocket.
Reports of delays in the highly anticipated launch of #ETF Ethereum have greatly disappointed investors.
But when spot Ethereum ETFs launch, the new products are expected to attract net inflows of $3 to $5 billion in the first six months.
This is as reported in the latest report published by crypto exchange – Gemini.
Ethereum ETF is poised to make $ETH prices skyrocket
Gemini analysis shows that the introduction of a spot Ethereum ETF in the US could significantly increase total assets under management (AUM).
When combining projected new inflows with existing assets in the Grayscale Ethereum Trust (ETHE).
Total AUM for a US-based spot Ethereum ETF could reach between $13 billion and $15 billion in the first half year of trading.
The report also shows that the market value of Ethereum compared to Bitcoin is currently near its lowest level in recent years.
However, the anticipated influx of capital into this new “vehicle” has the potential to improve its market position relative to Bitcoin.
If the ETH/BTC ratio returns to the three-year median of 0.067 $BTC / 1 ETH, that would represent an increase of almost 20%.
A better scenario reaching the maximum ratio of 0.087 BTC / 1 ETH seen in this period, would translate into a 55% rally.
According to Gemini, inflows below $3 billion in the first six months would be “disappointing,” considering spot Bitcoin ETFs attracted $15 billion in the same time frame.
Meanwhile, inflows exceeding $5 billion, equivalent to a third of Bitcoin ETF inflows, would be seen as a strong performance.
Hitting nearly 50% of the #bitcoin☀️ ETF inflows, or about $7.5 billion, would be a “significant upside surprise.”
ETF #Ethereum launch postponed
Currently, eight fund issuers have received 19b-4 approval on spot Ethereum ETFs and are awaiting final S-1 authorization to register and launch trading for the product.
Previous market predictions showed a 73% chance this ETF would launch on July 4. However, recent developments have significantly reduced those opportunities.
The SEC has reportedly requested additional revisions to the application, putting the Ethereum ETF launch on hold.