Bitwise Chief Investment Officer (CIO) bitcoin-etfs-bitwise-cio/” rel=”nofollow”>Matt Hougan We recently discussed money inflows into the US. ethereum-etfs-hashdex/” rel=”nofollow”>ethereum Spot ETF could attract. Specifically, he indicated how much could flow into these funds in their first 18 months of trading.
ethereum spot ETFs to record $15 billion in first 18 months of trading
Hougan mentioned in a ethereum-etps-will-attract-billions” rel=”nofollow”>note investors that ethereum Spot ETFs could see $15 billion in net inflows in their first 18 months of trading. He explained how he arrived at these figures to show that it wasn't just a guess. First, Hougan highlighted the market capitalizations of bitcoin and ethereum and stated that it expects investors to allocate funds to their respective exchange-traded products (ETPs) in proportion to their market capitalizations.
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Hougan noted that US investors have so far invested $56 billion in spot bitcoin ETPs and expects that figure to reach $100 billion or more by the end of 2025, when these funds should have become more mature and approved. on platforms such as Morgan Stanley and Merrill. Lynch.
Using this as a reference, the Bitwise CIO stated that the ethereum-etf-expert-potential-launch/” rel=”nofollow”>ethereum Spot ETF It would need to attract $35 billion in assets to keep up with bitcoin ETFs, which he believes could take about 18 months to happen. Hougan also highlighted that ethereum Spot ETFs will already have $10 billion in assets at launch, thanks to the ethereum-etf-here/” rel=”nofollow”>Grayscale ethereum Trust (ETHE)which will convert to an ETF on launch day.
Therefore, Hougan noted that ethereum spot ETFs are now $25 billion in inflows away from reaching parity with the amount of inflows bitcoin spot ETFs are expected to reach by the end of 2025. Hougan then highlighted data from the bitcoin–ethereum/” rel=”nofollow”>international ETP markets to show that investors may be allocating funds to bitcoin and ethereum ETPs roughly in line with their market capitalizations.
Use international markets as a reference point
According to Hougan, bitcoin–ethereum-may-secure-etf-approval/” rel=”nofollow”>bitcoin and ethereum ETPs In Europe, investors have €4,601 and €1,305 in assets under management (AuM), which translates to 78% and 22% of the total funds available in both markets. Similarly, the bitcoin and ethereum ETPs in Canada are at C$4,942 (77%) and C$1,475 (23%) respectively.
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Working with the ethereum ETP bitcoin-etf-sees-surge-in-demand/” rel=”nofollow”>market share in CanadaHougan estimated that US ethereum spot ETFs could also grab 22% of the US market. Based on this, Hougan lowered the estimate of net inflows for ethereum spot ETFs from $25 billion to $18 billion, excluding Grayscale assets.
Hougan ended up reducing the estimated net inflows to $15 billion taking into account the fact that a significant portion of the flows to the bitcoin-spot-etfs-inflow/” rel=”nofollow”>US Spot bitcoin ETF They are related to the carry trade. It removed $10 billion of carry trade-related assets under management from the bitcoin market, reducing its estimates for bitcoin from $100 billion to $90 billion and for the ethereum-etf-gary-gensler/” rel=”nofollow”>ethereum Spot ETF from $18 billion to $15 billion.
Featured image created with Dall.E, chart from Tradingview.com
