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Ethereum ETFs Set to Attract $569 Million Monthly, Researcher Predicts

2 mins
Updated by Daria Krasnova
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In Brief

  • Ethereum spot ETFs are pending SEC approval of the S-1 filing registration statements.
  • Analysts believe ETFs might attract significant investments, boosting the price of ETH.
  • Researcher Bobby Banzai predicts these ETFs could see inflows of $569 million per month.
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The US Securities and Exchange Commission (SEC) approving Ethereum spot ETFs was a big step for the cryptocurrency market.

The regulator’s decision followed the earlier approval of Bitcoin spot ETFs, which led to a massive inflow of capital into BTC.

Ethereum ETFs Could Record Massive Inflows After Launch

A prominent crypto researcher Bobby Banzai forecasts monthly inflows of $569 million for Ethereum ETFs once trading begins. His prediction is based on international ETF values and Chicago Mercantile Exchange (CME) futures open interest data, which show that ETH’s value is around 19% relative to BTC.

“With Bitcoin flows amounting to $13.6 billion as of May 27 after 137 trading days, the implied amount of monthly ETH ETF flows are $569 million”, the researcher highlighted.

Bobby Banzai noted that the success of Bitcoin ETFs has incentivized issuers to promote Ethereum ETFs. Firms like Hashdex, VanEck, and Bitwise have previously published high-quality ads for their BTC ETFs. A similar marketing effort for ETH ETFs could lead to substantial inflows. Bloomberg analyst Eric Balchunas suggests that the newly approved instruments could capture up to 20% of the Bitcoin ETF market. 

Read more: Ethereum ETF Explained: What It Is and How It Works

However, JPMorgan analysts caution that the initial market reaction may be negative, predicting that ETH ETFs could see inflows between $1 billion and $3 billion in 2024 if launched before year-end. They argue that without staking yields, ETH ETFs may be less attractive.

Investors who buy, hold, and stake ETH can earn rewards, which provide extra yield. In contrast, spot Ethereum ETFs without staking offer exposure to ETH prices without these benefits.

Read more: How to Invest in Ethereum ETFs?

However, Ethereum’s value, supported by its usefulness in transactions, smart contracts, and decentralized applications (DApps), sets it up for substantial expansion. Industry experts like BlackRock co-founder Larry Fink and MicroStrategy CEO Michael Saylor have celebrated the approval of the ETFs as a significant development.

“Bitcoin looked like it was going to be the only asset securitized and offered as a spot ETF by the Wall Street establishment and would spread as the one legitimate cryptocurrency,” Michael Saylor stated.

As optimism grows, Ethereum’s price has shown strength, trading at $3,815 at the time of writing, up 33% since May 15. With ETH on exchanges at a six-year low, anticipated demand for Ethereum ETFs could further propel its value.

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Lockridge Okoth
Lockridge Okoth is a journalist at BeInCrypto, focusing on prominent industry companies such as Coinbase, Binance, and Tether. He covers a wide range of topics, including regulatory developments in decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), real-world assets (RWA), GameFi, and cryptocurrencies. Previously, Lockridge conducted market analysis and technical assessments of digital assets, including Bitcoin and altcoins such as Arbitrum, Polkadot, and...
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