Spot Ethereum ETFs to Attract Massive Investments
Bitwise’s Chief Investment Officer (CIO), Matt Hougan, predicts that Spot Ethereum ETFs could receive $15 billion in net inflows within their first 18 months of trading.
Basis for the Estimate
Hougan’s estimate is based on the following factors:
- Market Capitalization: He expects investors to allocate funds to Ethereum ETFs in proportion to Ethereum’s market cap compared to Bitcoin’s.
- Bitcoin ETF Inflows: US investors have invested $56 billion in Spot Bitcoin ETPs, and Hougan projects this to reach $100 billion by 2025.
- Ethereum Trust Conversion: The Grayscale Ethereum Trust (ETHE) will convert to an ETF on launch day, bringing $10 billion in assets.
- International ETP Markets: Bitcoin and Ethereum ETPs in Europe and Canada have market shares roughly in line with their market caps.
Net Inflow Adjustment
Hougan initially estimated net inflows of $25 billion for Spot Ethereum ETFs, but adjusted it to $18 billion to account for Ethereum’s smaller market share in Canada. He further lowered the estimate to $15 billion to factor in the impact of carry trades on Bitcoin ETF inflows.
