Ethereum ETFs will attract USD $7.5 billion in their first five months, estimates Galaxy Digital – DiarioBitcoin

According to the Galaxy Digital manager, ETFs Ethereum could move in their first five months of operations between 20% and 50% of what their peers moved based on Bitcoin.

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• Galaxy Digital trusts that ETFs Ethereum will be a good investment opportunity
• They believe that they would move around USD $7.5 billion in their first five months of operations
• This would correspond to 50% of what the ETFs have moved. Bitcoin in said period
• They also believe that the ETF Ethereum of Grayscale will see significant monthly outflows
• Funds based on Ethereum arrive on the market in the next few days

As the countdown approaches for the arrival of exchange-traded funds (ETFs) based on Ethereum, The team of Galaxy DigitaHe anticipates that these products will have quite remarkable success, seeing net inflows that could reach up to USD $7.5 billion in the first five months after their launch.

Estimates for ETFs Ethereum cash

The reading was presented by the vice president of the research area of Digital GalaxyCharles Yu, who in a report published by the entity, cited by The Block anticipates that this would correspond to roughly half of the net income that ETFs have generated Bitcoin in its first five months of operations.

In this regard, Yu anticipates that ETFs Ethereum Once approved, they would capture between 20% and 50% of what the ETFs captured Bitcoin in this period, this presenting a conservative reading in the face of the success that the latter have capitalized on. Therefore, it recognizes that funds based on ETH They could be a great investment opportunity as soon as they hit the market.

Regarding this, Yu indicated that “Bitcoin ETFs have been active for just under 6 months and can serve as a useful basis for examining the likely reception of Ethereum spot ETFs”. He also assured that funds based on the main digital currency are “partially responsible” of the rebound that they have seen in their price so far in 2024, this because they have attracted large amounts of institutional capital after the great interest they have generated.

“We believe that the potential launch of a spot ether ETF should have a very positive impact on the adoption of Ethereum in the market and the crypto market in general”he said, adding that this would give greater legitimacy to the digital currency, precisely because of the interest it will generate among institutional and retail investors.

Going deeper into this reading, Yu proposes that ETFs Ethereum proposed by reputable entities will capitalize the largest capital inflows, but on the other hand, the fund that will manage Grayscale will record outputs just as seen with Bitcoin. Estimates that this product could lose about 319,000 ETH (worth $1.1 billion) per month.

But returning to capital flows, Yu’s reading goes somewhat hand in hand with what was stated by the CIO of Bitwise, Matt Hougan, who went a bit further, proposing that these products could capitalize on some $15 billion in net revenue in their first 18 months.

The wait for ETFs Ethereum

The reading of Galaxy Digital comes amid rumors of early approval of ETFs Ethereum in cash, since it is theorized that these could go on the US stock market next week if everything goes according to plan.

A recently published report by Reuters points out that the U.S. Securities and Exchange Commission (SEC) could be about to approve the corresponding forms for the ETFs Ethereum begin to quote, which could happen before next July 4th based on how the due process with the applicants has been evolving.

Sources confirmed that at least BlackRock, Franklin Templeton and Grayscale They would already be in the final stages of due process with the SEC, adjusting minimum details for the launch of the funds in question.

Days ago, the analyst of Bloomberg, Eric Balchunas, made certain parallels between the process that follows VanEck with your ETF Ethereum and the time when he was in the process of launching his fund based on Bitcoin. He theorized that if certain conditions are met, this product could arrive next week.

However, the arrival date of the ETFs Ethereum to the US market remains a mystery. Although the president of the SEC, Gary Gensler indicates that the process continues as expected, the possible market launch date for these funds has been handled with great discretion.

Article by Angel Di Matteo / DailyBitcoin

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