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Ethereum ETF Poised to Steal 20% Of Bitcoin ETF’s Money Flow, Here’s Why

Mustafa Mulla

Last week, U.S. Bitcoin ETFs saw a record $1.8 billion in inflows, marking their 19th consecutive day of increased demand. Many people in the crypto community think that once Spot Ethereum ETFs go live, Ethereum could attract 10% to 20% of the money currently flowing into spot Bitcoin ETFs. 

As, the agency is reviewing S-1 registration statements, which are necessary for final approval and include important disclosures.

Ethereum ETFs on the Rise

Jag Kooner, the Head of Derivatives at Bitfinex, a leading crypto exchange believes that once the Spot Ethereum ETFs go live it is expected to capture up to 20% of the investments currently going into Bitcoin ETFs in the United States. Further, Kooner highlighted the importance of future clarity from the U.S. SEC on whether staking will be permitted for spot Ethereum ETFs. 

This shift reflects investors’ desire to diversify their investment portfolios and recognize the unique advantages of Ethereum. 

Furthermore, Kooner compares a similar historical situation when Gold and Silver ETFs were introduced in the early 2000s. Although Gold ETFs came first in 2004, the launch of Silver ETFs in 2006 led to a significant change in investment patterns. 

The surge in investor interest likely stemmed from the increasing demand for silver across diverse industries, prompting many to embrace these new opportunities.

ETH ETF Has To Wait More

Despite receiving approval, Ethereum ETFs lag behind Bitcoin spot items as they await formal registration. Leading financial institutions like BlackRock and Fidelity are still waiting for SEC approval to offer Ethereum funds.

On the flip side, JPMorgan predicts that Ethereum ETFs will experience lower net inflows compared to Bitcoin, which currently boasts $15.3 billion in inflows.

However, many experts predict that Ethereum ETFs may only attract net inflows ranging from $2 billion to $4 billion for the rest of 2024. Moreover, it is expected to take some time for Ethereum to catch up to Bitcoin, which has $70 billion in ETF assets, around 20% of the market.

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