Galaxy Digital, a cryptocurrency firm, has provided its outlook on how Ethereum (ETH) exchange-traded funds (ETFs) will compare to Bitcoin (BTC) ETFs. Charles Yu, the firm’s vice president of research, conducted a study and concluded that Ethereum ETFs will attract approximately one-third of the inflows that Bitcoin ETFs receive. The estimate was based on factors such as market capitalization, open interest levels, volume in futures markets, and total assets under management (AUM) of existing funds for both assets. According to Yu, the inflows of ETH spot ETFs could be around 33% the size of Bitcoin spot ETF inflows in US dollars, with a range of 20% to 50%. Applying this calculation, Galaxy Digital predicts monthly ETH ETF inflows of approximately $1.0 billion for the first five months after the approval and launch of an Ethereum ETF. Yu also believes that ETH ETFs will have a positive impact on the Ethereum markets due to increased accessibility, recognition by regulators and trusted financial services brands, and a better understanding of Ethereum technology by financial professionals. However, it is important for investors to conduct their own research and exercise caution when investing in high-risk assets such as Bitcoin, cryptocurrency, or digital assets.
