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Bitwise CIO Sees $15 Billion Inflows Into Spot Ethereum ETF, How Will ETH React?

by xyonent
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Ethereum 0fec88.jpeg

Chief Investment Officer at Bitwise Matt Hogan Recently, we discussed the influx into the U.S. Spot Ethereum ETF What kind of inflows are likely to come in. Specifically, how much inflows are likely to come into these funds within 18 months of starting trading.

Spot Ethereum ETF Hits $15 Billion in 18 Months Since Launch

Hogan is Note He told investors that the Spot Ethereum ETF could see $15 billion in net inflows in its first 18 months of trading. He detailed how he arrived at this figure to show it was not just a guess. First, Hogan said: Bitcoin and Ethereum He said he expects investors to allocate funds to each exchange-traded fund (ETP) proportionately based on market capitalization.

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Hogan noted that U.S. investors have put $56 billion into spot bitcoin ETPs to date, and he expects that figure to reach more than $100 billion by the end of 2025 as these funds mature further and are accepted by platforms like Morgan Stanley and Merrill Lynch.

With reference to this, Bitwise’s CIO said: Spot Ethereum ETF Hogan believes it would take around 18 months to attract $35 billion in assets to reach parity with the Bitcoin ETF, and noted that the Spot Ethereum ETF already has $10 billion in assets at launch. Grayscale Ethereum Trust (ETHE)It will be converted into an ETF on the launch date.

As such, Hogan noted, the Spot Ethereum ETF still has $25 billion in inflows remaining, which is equivalent to the amount of inflows the Spot Bitcoin ETF is expected to reach by the end of 2025. Hogan then noted: International ETP Market This suggests that investors may be allocating to Bitcoin and Ethereum ETPs roughly in line with their market caps.

Use the international market as a benchmark

According to Hogan, Bitcoin and Ethereum ETPs European Bitcoin and Ethereum ETPs have assets under management (AuM) of €4,601 and €1,305, respectively, representing 78% and 22% of the total available funds in these markets. Similarly, Canadian Bitcoin and Ethereum ETPs have AuM of CAD4,942 (77%) and CAD1,475 (23%), respectively.

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Manipulating Ethereum ETP Canadian Market ShareHogan estimated that a U.S. spot Ethereum ETF could also capture 22% of the U.S. market. Based on this, he lowered his estimate of net inflows into the spot Ethereum ETF, excluding Grayscale’s assets, from $25 billion to $18 billion.

Hogan ultimately lowered his estimate of net inflows to $15 billion, taking into account the fact that a significant portion of the inflows was flowing into the United States. US Spot Bitcoin ETF He removed $10 billion in carry trade-related assets from the Bitcoin market and lowered his estimate of Bitcoin’s value from $100 billion to $90 billion. Spot Ethereum ETF From $18 billion to $15 billion.

ETH Price Holds Above $3,300 | Source: ETHUSDT on Tradingview.com

Featured image created by Dall.E, chart taken from Tradingview.com

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