According to a Sygnum Bank analyst, Ethereum ETFs are expected to experience significantly lower inflows compared to Bitcoin spot ETFs in their first year of trading.
Sygnum Bank Research Manager Katalin Tischhauser explained that Ethereum's lower name recognition is likely to result in slower adoption. Since Ethereum's market cap is only one-third of Bitcoin's, Tischhauser expects relative inflows for Ethereum to be in the range of 15% to 35% of Bitcoin's inflows. This means an estimated $5 to $10 billion for the first year.
In comparison, Tischhauser estimated that spot Bitcoin ETFs could attract inflows of $30 billion to $50 billion in the first 12 months based on current and historical market patterns.
“With $17.6 billion in net inflows to date, the expected second wave of spot BTC inflows is likely to occur over the next six months at at least the same level as governance processes at various institutions gradually conclude, and possibly as many as BlackRock’s sovereign wealth funds, endowments, insurers and pension funds,” Tischhauser said. “It is likely to bring in more entries due to repeated interest from major traditional institutions,” he added.
*This is not investment advice.