Bitwise Investment Manager (CIO) Matt Hogan I recently discussed inflows into the United States Ethereum ETFs It can attract. Specifically, he mentioned the amount that could flow into these funds in the first 18 months of trading.
Ethereum ETFs Record $15 Billion in First 18 Months of Trading
Hogan mentioned in a NB Investors expect Spot Ethereum ETFs could record $15 billion in net inflows in their first 18 months of trading. He explained in detail how he arrived at these numbers to show that it was not just a guess. First, Hogan highlighted the market value of Bitcoin and Ethereum He stated that investors are expected to allocate their exchange-traded products (ETPs) in proportion to their market capitalization.
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Hogan noted that US investors have so far invested $56 billion in Bitcoin exchange-traded products, and he expects that number to reach $100 billion or more by the end of 2025, when that money should have accrued more and been approved. On platforms like Morgan Stanley and Merrill. Lynch.
Using this as a reference, the IT Director at Bitwise stated that Ethereum ETFs It would need to attract $35 billion in assets to stay on par with Bitcoin ETFs, which he believes could take about 18 months. Hogan also highlighted that Spot Ethereum ETFs will already have $10 billion in assets upon launch, thanks to Grayscale Ethereum Fund (ETHE)which will be converted into an ETF on launch day.
Therefore, Hogan noted that Spot Ethereum ETFs now only have $25 billion in inflows left to reach parity with the volume of inflows that Spot Bitcoin ETFs are expected to reach by the end of 2025. Hogan then highlighted On data from International ETP Markets To show that investors may allocate to Bitcoin and Ethereum exchange-traded products roughly in line with their market cap.
Use international markets as a reference point
According to Hogan, Bitcoin and Ethereum ETPs In Europe, assets under management are €4,601 and €1,305, which translates to 78% and 22% of the total funds available in both markets. Likewise, Bitcoin and Ethereum ETFs in Canada are valued at C$4,942 (77%) and C$1,475 (23%), respectively.
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Working with Ethereum’s ETP Market share in CanadaHogan estimated that US Ethereum ETFs could also capture 22% of the US market. Accordingly, Hogan lowered the estimate of net inflows for Spot Ethereum ETFs from $25 billion to $18 billion, excluding Grayscale assets.
Ultimately, Hogan reduced the estimated net flows to $15 billion by taking into account the fact that a large portion of the flows to… Bitcoin ETFs in the US It is associated with mobile trading. He removed $10 billion of assets subject to carry-related trading from the Bitcoin market, lowering his estimate for Bitcoin from $100 billion to $90 billion and the expected rate for Bitcoin. Ethereum ETFs From $18 billion to $15 billion.
Featured image created with Dall.E, chart from Tradingview.com