Ethereum
Ethereum ETF: A potential of 4 billion dollars in just 5 months!
Thursday June 6, 2024 ▪ 3 min reading ▪ by Ariela R.
Approved on May 24, Ethereum ETFs are poised to transform the crypto investing landscape. According to K33 Research, these digital assets could generate up to $4 billion over the next five months.
The reasons for the potential of Ethereum ETFs
Many crypto experts expect Ethereum ETFs to follow the path set by Bitcoin ETF. Since their launch, these have been a resounding success.
According to K33 Research, this estimate is based on the relative market share of Ethereum assets under management compared to Bitcoin. This currently represents 28%. With institutional funds controlling 3.3% of the circulating ETH supply, K33 expects significant inflows. These would reach between 3.1 and 4.8 billion dollars, or between 750,000 and 1 million ETH.
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Comparison with Bitcoin ETFs
Ethereum ETFs are directly inspired by the Bitcoin ETF model. Since January, the American Bitcoin ETF to have absorbed $13.9 billion. Globally, they control over 1 million BTC. This represents more than 5% of the circulating supply of BTC.
Using this dynamic as a reference, forecasts for Ethereum ETFs look promising. Bloomberg analyst Eric Balchunas, for example, anticipates yields between 10% and 20% of what Bitcoin ETFs have generated. “Getting 20% back would be a huge victory,” he said in a statement. Tweeter.
Success of Ethereum ETFs: What impact on the institutional market?
Ethereum ETFs should strengthen Ethereum’s position on the institutional market. ETH futures on the Chicago Mercantile Exchange are already 23% the size of Bitcoin. This reflects strong institutional demand.
European and Canadian funds also show a growing appetite for Ethereum ETFs. They hold approximately 1/3 of assets under management compared to Bitcoin. This positive trend should further stimulate institutional adoption of Ethereum.
With forecast inflows of up to $4 billion, Ethereum ETFs are thus positioned alongside Bitcoin as a pillar. crypto investments.
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Ariela R.
My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.