Following the recent approval of the Spot Ethereum ETFs last month, an analyst has predicted that the investment vehicle will capture up to 20% of Spot Bitcoin ETF flows. Bitfinex’s head of derivatives, Jag Kooner, forecasted the performance of the ETH offering.
Both Ethereum and Bitcoin are the only two crypto-based ETFs in the United States. Since its approval in January, BTC has been one of the most successful exchange-traded products in the country’s history. Now, there is an expectation that Ethereum could attract a fifth of the flows going into the Bitcoin offering.
With the midpoint of 2024 fast approaching, the digital asset sector has been at the forefront of discussions within finance. Crypto-based ETFs have been a significant part of ongoing discourse, and as the second offering prepares to go live, the market is watching closely.
One expert believes that the recently approved Spot Ethereum ETFs could capture a significant portion of Bitcoin ETF flows. Specifically, Bitfinex’s Jag Kooner noted that the offering could acquire as much as a fifth of the overall flows into the digital asset investment offering.
“Forecasts show that spot Ethereum ETFs could capture between 10 and 20% of the flows that have been going into spot Bitcoin ETFs,” Kooner told The Block. “The launch of gold ETFs offers a historical parallel, as when new gold ETFs were introduced, they attracted significant investment,” Kooner added.
The debut of new gold ETFs historically affected the inflows in investment products that already existed. Kooner remarked, “Similarly, the introduction of Ethereum ETFs could see fund managers reallocating resources to balance their exposure to both Bitcoin and Ethereum.”