Galaxy Digital Predicts Ethereum ETFs to Garner Approximately 33 of Bitcoin ETFs Investments
Galaxy Digital, a crypto firm, has provided its insights on how Ethereum (ETH) exchange-traded funds (ETFs) will compare to Bitcoin (BTC) ETFs. In a research post by Charles Yu, the vice president of research at the firm, it is estimated that Ethereum ETFs will receive approximately one-third of the inflows seen by similar Bitcoin products. This estimation is based on a comparison of the market cap, open interest levels, volume in futures markets, and total assets under management (AUM) of both assets. Yu states that Ethereum spot ETF inflows could be around 33% the size of US spot Bitcoin ETF inflows, with a range of 20% to 50% in terms of dollar size. Applying this estimation, it is predicted that monthly ETH ETF inflows could reach approximately $1.0 billion for the first five months following the launch of an Ethereum ETF. Yu also believes that ETH ETFs will have a positive impact on the Ethereum markets due to expanded accessibility, greater acceptance from regulators and trusted financial services brands, and increased understanding and adoption of Ethereum technology by financial professionals. However, it is important for investors to conduct their own research and exercise caution when investing in high-risk assets such as Bitcoin, cryptocurrency, or digital assets.