ETHE - Ethereum ETFs Forecast To Attract $15 Billion Of Investor Capital

2024-06-26 10:24:50 ET

The new crop of %Ethereum (CRYPTO: ) spot exchange-traded funds (ETFs) is likely to attract $15 billion U.S. of investor capital in their first 18 months, according to a forecast from Bitwise.

While that would be a sizable investment in Ethereum ETFs, it would be less than the inflows seen in spot %Bitcoin (CRYPTO: ) ETFs since their launch in January of this year.

So far, American investors have invested a total of $56 billion U.S. in spot Bitcoin ETFs across more than a dozen funds, according to market data.

The amount invested in Bitcoin ETFs is forecast to reach $100 billion U.S. or more by the end of 2025 as institutional investors pile into the funds.

The %GrayscaleEthereumTrust (OTC: ), with $10 billion U.S. in assets under management, is expected to convert to a spot ETF in coming months.

Other asset managers are in the process of launching spot Ethereum ETFs.

While expected to be popular, the Ethereum ETFs are not likely to attract as much capital as their Bitcoin rivals, says Bitwise in its forecast.

This is due to several reasons, chief among them is that Ethereum is not as well known as Bitcoin. For many investors, Bitcoin is synonymous with cryptocurrency, notes Bitwise.

The price of Ethereum has risen 43% so far in 2024 and currently trades at $3,368 U.S. per digital token.