Will the ETH Price Surge Following ETFs Launch? Gemini Outlines the Possibilities

Investors are eagerly awaiting the launch of Ethereum ETFs this month, but reports of delays seem to have rattled investors.

Once Ethereum ETFs land, these new products are expected to attract net inflows of $3 billion to $5 billion within the first six months of trading, according to a recent report published by cryptocurrency exchange Gemini.

Ethereum ETFs Poised for Massive Inflows

Gemini analysis suggests that the launch of a spot Ethereum ETF in the US could significantly boost total assets under management. When combined with the expected new inflows and existing assets in the Grayscale Ethereum Trust (ETHE), total U.S. spot ETF assets under management could reach $13 billion to $15 billion during the first half of the trading year.

the a report He also noted that Ethereum’s market cap compared to Bitcoin is currently near its lowest levels in recent years. However, the expected influx of capital into these new vehicles could improve its market position compared to Bitcoin.

If the ETH/BTC ratio returns to its three-year average of 0.067, it would represent a gain of around 20%. In a more optimistic scenario, where the ratio maxes out at 0.087 during this period, it would translate into a gain of 55%.

According to Gemini, inflows below $3 billion in the first six months would be “disappointing,” given that spot bitcoin ETFs have attracted $15 billion in a similar timeframe. Meanwhile, inflows above $5 billion, equivalent to a third of bitcoin ETF inflows, would be considered strong performance. Reaching close to 50% of bitcoin ETF inflows, or around $7.5 billion, would be a “big positive surprise.”

Spot Ethereum ETF Launch Delays

Currently, eight fund issuers have received 19b-4 approvals for the Ethereum Spot ETF, and are awaiting final S-1 approval to list the products and launch trading. Previous market forecasts indicated a 73% chance of these funds launching by July 4. However, recent developments have significantly reduced those odds.

The SEC reportedly requested additional amendments to the applications, causing a delay. Despite the setback, final approval of the Ethereum ETF is still expected. The timelines have been extended, with issuers of the funds being asked to submit updated applications by July 8.