Ethereum ETF Expected to Attract Approximately 33 of Bitcoin ETF Inflows Galaxy Digital

CoinDesk Report:
Cryptocurrency company Galaxy Digital is predicting how Ethereum (ETH) exchange-traded funds (ETFs) will overlap with Bitcoin (BTC) ETFs.
According to a new research post by Charles Yu, Vice President of Research at the company, Ethereum ETFs will see approximately one-third of similar products flowing in.
Yu states that to reach their estimate, the company compared the market capitalization of these two assets, the open interest and trading volume in the futures market, and the total assets under management of existing funds.
“Based on the above, we believe that the inflow of Ethereum spot ETFs will be about three times less than that of the US spot Bitcoin ETFs (consistent with the upper limit multiplier), ranging from two to five times. In other words, we believe that the inflow of Ethereum spot ETFs may be 33% of the US spot Bitcoin ETFs, ranging from 20% to 50% of the dollar.
Applying this multiplier to the $15 billion Bitcoin spot ETF inflow as of June 15th, it implies that in the first five months after the approval and launch of Ethereum ETFs, monthly ETH ETF inflows will be approximately $1 billion (estimated range: $600 million to $1.5 billion)…”
Source: Galaxy Digital
Yu further states that ETH ETFs should have an overall positive impact on the ETH market for three primary reasons:
“(i) expanding accessibility across various wealth classes,
(ii) increasing acceptance through formal recognition from regulatory bodies and trusted financial service brands. ETFs provide broader coverage for both retail and institutional investors, offering wider distribution through more investment channels and supporting the use of Ethereum in a greater range of investment strategies within portfolios.
Furthermore, a deeper understanding of Ethereum by financial professionals would ideally accelerate investment and adoption of the technology.”
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