ETF Ethereum: A potential of $4 billion in just 5 months!

Approved on May 24, Ethereum ETFs are about to transform the crypto investment landscape. According to K33 Research, these digital assets could generate up to $4 billion in the next five months.

The reasons behind the potential of Ethereum ETFs

Many cryptography experts expect Ethereum ETFs to follow the path paved by Bitcoin ETFs. Since their launch, the latter have experienced resounding success.

According to K33 Research, this estimate is based on the relative market share of Ethereum assets under management compared to Bitcoin. It currently represents 28%. With institutional funds controlling 3.3% of the circulating ETH supply, K33 anticipates significant inflows. These would reach between $3.1 billion and $4.8 billion, or between 750,000 and 1 million ETH.

Comparison with Bitcoin ETFs

Ethereum ETFs are directly inspired by the Bitcoin ETF model. Since January, American Bitcoin ETFs have absorbed $13.9 billion. Globally, they control more than one million BTC. This represents over 5% of the circulating BTC supply.

Using this dynamic as a reference, forecasts for Ethereum ETFs seem promising. Bloomberg analyst Eric Balchunas, for example, anticipates returns between 10% and 20% of what Bitcoin ETFs have generated. “Recovering 20% would be a huge win,” he stated in a tweet.

Success of Ethereum ETFs: What impact on the institutional market?

Ethereum ETFs are expected to strengthen Ethereum’s position in the institutional market. ETH futures contracts on the Chicago Mercantile Exchange already represent 23% of the size of Bitcoin. This reflects strong institutional demand.

European and Canadian funds also show a growing appetite for Ethereum ETFs. They hold about 1/3 of the assets under management compared to Bitcoin. This positive trend is expected to further stimulate institutional adoption of Ethereum.

With inflow predictions reaching up to $4 billion, Ethereum ETFs are thus positioned alongside Bitcoin as a pillar of crypto investments.