Market maker Wintermute believes that the Ethereum ETF could attract up to $4 billion in inflows from investors over the next year. This is lower than the $4.5 billion to $6.5 billion expected by most analysts, and the latter is about 62% less than the $17 billion that the Bitcoin ETF has attracted in the past six months since it was traded in the United States. Wintermute predicts that driven by these inflows, the price of Ethereum could rise by as much as 24% in the next 12 months.

U.S. regulators rejected a request from issuers to allow Ethereum ETFs to collateralize their cryptocurrency holdings, which would have generated income that could be shared with investors. “This loss reduces the competitiveness of ETH ETFs compared to direct holdings, as investors can still benefit from staking,” Wintermute said in its report.