Ethereum ETFs expected to attract $569 million per month

The U.S. Securities and Exchange Commission's (SEC) approval of Ethereum spot ETFs was a significant milestone for the cryptocurrency market. The regulator's decision came after the previous approval of the funds Bitcoin Negotiated. This results in a massive influx of capital into Bitcoin.

Ethereum ETFs Could See Massive Inflows After Launch

Leading crypto researcher Bobby Banzai expects monthly inflows of $569 million forEthereum ETF Once you start trading. Its prediction is based on international ETF values ​​and open interest data from the Chicago Mercantile Exchange (CME). Which shows that the value of ETH is around 19% compared to BTC.

“With Bitcoin inflows reaching $13.6 billion as of May 27 after 137 trading days, the implied monthly ETH ETF inflows are $569 million.” Emphasize searcher.

Bobby Banzai noted that the success of Bitcoin ETFs has motivated issuers to promote Ethereum ETFs. Companies like Hashdex, VanEck, and Bitwise have already released high-quality announcements for their BTC ETFs. A similar marketing effort for ETH funds could lead to significant inflows. Bloomberg analyst Eric Balchunas suggests that the newly approved instruments could capture up to 20% of the Bitcoin ETF market.

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However, JPMorgan analysts warn that the initial market reaction could be negative. They expect ETH ETFs to see inflows of between $1 billion and $3 billion in 2024 if launched before the end of the year. They argue that without banking on returns, ETH funds could be less attractive.

Investors who buy, hold and store ETH can earn rewards that provide additional yield. In contrast, storeless Ethereum spot funds provide exposure to ETH prices without these benefits.

👈Read more: Ethereum (ETH) Price Prediction in 2024

However, the Value of Ethereumsupported by its utility in transactions, smart contracts andDecentralized applications (DApps), preparing them for significant expansion. Industry experts such as BlackRock co-founder Larry Fink and MicroStrategy CEO Michael Saylor hailed the approval of Ethereum ETFs as an important development.

“It looked like Bitcoin would be the only asset securitized and offered as a spot ETF by Wall Street and would spread as the only legitimate cryptocurrency.” declared Michael Saylor.

As optimism grows, Ethereum price has shown strength, trading at $3,815 at the time of writing. Up 33% since May 15. With ETH trading at a six-year low, expected demand for Ethereum ETFs could drive its value even higher.