Ethereum ETFs: Will They Be as Popular as Bitcoin ETFs?

Crypto firm Galaxy Digital thinks Ethereum (ETH) exchange-traded funds (ETFs) will be popular, but not as popular as Bitcoin (BTC) ETFs.

Ethereum ETFs: Less Inflow Than Bitcoin ETFs

According to Galaxy Digital, Ethereum ETFs will attract about one-third of the money flowing into Bitcoin ETFs. They came to this conclusion by comparing the market value, trading volume, and assets under management of both cryptocurrencies.

“We think Ethereum ETFs will see about 33% of the money that Bitcoin ETFs get,” says Charles Yu, Galaxy Digital’s research vice president. “This could range from 20% to 50%.”

Positive Impact on Ethereum

Galaxy Digital believes Ethereum ETFs will have a positive impact on the Ethereum market for several reasons:

  • More people can invest:
    ETFs make it easier for everyone, from regular investors to big institutions, to buy Ethereum.
  • More acceptance: Regulators and financial institutions will take Ethereum more seriously.
  • More investment strategies: Ethereum will be used in more investment strategies, leading to more people buying it.

Overall, Galaxy Digital thinks Ethereum ETFs will be a good thing for the Ethereum market.