Bitwise CIO says Ethereum ETPs will attract $15B net flows in first 18 months

2024-6-27 21:09

Bitwise CIO Matt Hougan says Ethereum ETPs could see $15 billion in net flows in the first 18 months. Hougan suggests that a comparison with Bitcoin puts Ether ETFs net inflows at this AUM by end of 2025

The Ethereum spot ETFs are a matter of when, not if, in terms of their trading debut.

Ahead of the SEC’s approval for trading – analysts say it could be next week – Bitwise chief investment officer Matt Hougan has shared a bullish project on potential net inflows.

Bitwise CIO says Ethereum ETFs to see $15 billion in net inflows in 18 months

According to Hougan, the Ethereum ETPs market is set to attract net inflows of $15 billion in the first 18 months.

On how this pans out, the Bitwise CIO shares a scenario comparing the market size of Bitcoin and Ethereum. In this case, BTC currently accounts for 74% of the market share at $1.2 trillion while Ether is at 26% with $400 billion.

“Absent other information, I’d expect investors to allocate to BTC and ETH ETPs roughly in-line with their market caps,” Hougan wrote in a report.

Hougan also noted that US investors have poured about $56 billion into spot Bitcoin ETFs so far and this number could reach $100 billion by the end of 2025. In that case, the debut of Ether spot ETFs would mean an injection of $35 billion in assets for them to reach a comparative level of adoption.

“Using this $100 billion figure as a reference, spot Ethereum ETPs would need to attract $35 billion in assets to reach parity, a process I expect will take about 18 months,” he wrote.

BTC, ETH prices

Spot Bitcoin ETFs launched in January this year, sparking massive demand as new investors sought exposure to the benchmark cryptocurrency. BTC price rose as this and other factors buoyed sentiment to reach the all-time high above $73,000.

Ether also surged to above $4,000, although both coins are back to support levels around $61k and $3.3k respectively.

Despite the bearish flip, analysts are bullish on the two cryptocurrencies, including Standard Chartered who see BTC reaching $250,000 by end of 2025. SEC’s reported ending of probe into Ethereum 2.0 also lifted the Ether market.

The post Bitwise CIO says Ethereum ETPs will attract $15B net flows in first 18 months appeared first on CoinJournal.

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