• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
Analysis of Ethereum ETF Growth Potential

Analysis of Ethereum ETF Growth Potential

user avatar

by Giorgi Kostiuk

a year ago


Sygnum Bank's Head of Investment Research, Katalin Tischhauser, is anticipating substantial growth in spot Ethereum investment funds (ETFs) with the potential to amass up to $10 billion in assets under management (AUM) during their initial years. This foresight aligns with the projected performance of Bitcoin ETFs in the market. Tischhauser, a former executive at Goldman Sachs, has expressed a positive outlook regarding investment products based on Ethereum.

Projected Inflow into Bitcoin and Ethereum ETFs

Tischhauser's projections for Bitcoin ETFs suggest an inflow ranging between $30 billion and $50 billion within the first year. Similar estimates are made for Ethereum, taking into account its relatively lower market capitalization and recognition in comparison to Bitcoin.

As a result, she envisions that the inflow into Ethereum ETFs would represent approximately 15-35% of Bitcoin's inflows, translating to an expected $5 to $10 billion during the initial year of trading. This foresight underscores the potential of Ethereum despite its slower adoption rate attributed to its lesser brand recognition.

Factors Driving Ethereum's Appeal

ETFs present a significant advantage for traditional investors who lack the infrastructure for direct cryptocurrency investments. These regulated products offer a familiar and accessible avenue for investing in cryptocurrencies like Ethereum. Tischhauser highlights Ethereum's prominence as a leading smart contract platform, offering significant value through diverse applications and use cases, setting it apart from Bitcoin, which is primarily viewed as a store of value.

Ethereum's attractiveness to traditional institutional investors is further bolstered by its economic model based on revenues and cash flows, diverging from Bitcoin's digital gold narrative. This attribute makes Ethereum more relatable and appealing to investors who can better comprehend its financial fundamentals compared to Bitcoin's value proposition.

Stability in Ethereum's Price

Despite the introduction of Ethereum ETFs, the price of Ethereum has maintained relative stability. Tischhauser suggests that the market has not yet fully factored in the potential advantages of these investment instruments and forecasts that substantial inflows could significantly influence Ethereum's price. Positive net inflows could enhance market sentiment and trigger demand shocks due to Ethereum's restricted liquid supply. Nonetheless, realizing this scenario might take time as investors gradually acknowledge the value of these ETFs.

Should the inflows into Ethereum ETFs mirror those of Bitcoin ETFs, Tischhauser speculates that Ethereum's price could surge up to $6,000. The ongoing downward trend in Ethereum ETF inflows implies that any substantial inflows could have a more pronounced impact on Ethereum as compared to Bitcoin.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Market Optimism: Traders Expect Bitcoin to Rise to $120K

chest

Data shows that 46% of traders believe Bitcoin will rise to $120K by the end of July, reflecting confidence in the crypto market.

user avatarGiorgi Kostiuk

Jonathan Gould Appointed as OCC Head: New Horizons for Crypto Banking

chest

Senate has confirmed Jonathan Gould as OCC head, which may lead to changes in crypto banking regulations and market access.

user avatarGiorgi Kostiuk

Florida Probes Robinhood: Allegations of False Crypto Service Promotions

chest

Florida has launched an investigation into Robinhood over allegations of misleading advertising of its crypto services as the cheapest in the market.

user avatarGiorgi Kostiuk

Anonymous whale deposits 4,500 ETH to Binance with $4.32 million loss

chest

An anonymous whale deposited 4,500 ETH to Binance, resulting in a $4.32 million loss, according to analyst Ai Yi.

user avatarGiorgi Kostiuk

Bitcoin Breaks Records Again: The Influence of ETFs and Politicians

chest

Bitcoin reached a new record thanks to institutional investments and political decisions, boosting confidence in cryptocurrencies.

user avatarGiorgi Kostiuk

Circle and HiFi Bridge Partnership: New Opportunities for B2B Payments with USDC

chest

Circle teams up with HiFi Bridge to introduce B2B payment solutions using USDC to Brazil and Hong Kong.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.