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Tuesday, June 11, 2024
HomeCryptoEthereum ETF is expected to account for 20% of Bitcoin ETF flows

Ethereum ETF is expected to account for 20% of Bitcoin ETF flows

Both Ethereum and Bitcoin represent the only two cryptocurrency-based ETFs in the United States. Furthermore, since its approval in January, BTC has had one of the most successful exchange-traded products in the country’s history. Currently, it is expected that Ethereum can capture a fifth of the inflows into the Bitcoin offering.

Ethereum ETF will capture 10%–20% of Bitcoin ETF flows

With the midpoint of 2024 fast approaching, the year has seen the digital assets sector rise to the top. Dominating discussions in the financial sector, cryptocurrency-based ETFs have been a key part of ongoing discussions. As such a second opinion prepares to hit the market, the market is watching to see what its debut will be like.

Furthermore, they are starting to question the impact its launch will have on the entire cryptocurrency industry. With Bitcoin proving extremely successful just five months after its launch, the presence of a secondary offering has certainly become a point of interest.

Recently approved Ethereum spot ETFs could capture a significant portion of Bitcoin ETF flows, according to one expert. Specifically, Bitfinex Jag Kooner noted that the offering could net up to one-fifth of the total amount flowing into the digital asset investment offering.

Kooner told The Block : “Forecasts suggest that spot Ethereum ETFs could capture 10 to 20% of the inflows going into spot Bitcoin ETFs.” “The launch of gold ETFs provides a historical parallel, as when new gold ETFs were introduced, they attracted significant investment,” Kooner added.

Historically, the launch of these new gold ETFs has impacted capital flows into already existing investment products. Kooner commented, “Similarly, the introduction of Ethereum ETFs could see fund managers reallocate resources to balance their exposure to both Bitcoin and Ethereum.”

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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