Ethereum ETF Expected to Attract Only 15-20% of Bitcoin ETF’s Inflow, Says 10X Research CEO

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Markus Thielen, CEO of 10X Research, has indicated a tempered interest in the upcoming U.S. Spot Ethereum ETF compared to Bitcoin ETFs.
New data suggest that the ETF could attract only a small portion of investments relative to its Bitcoin counterpart.
Optimism over the impending launch has already caused a slight increase in Ethereum’s price.

Get the latest insights on the upcoming U.S. Spot Ethereum ETF and its expected impact on the market.

Tempered Expectations for Ethereum ETF

Despite the rising excitement surrounding the imminent U.S. Spot Ethereum ETF, Markus Thielen of 10X Research has forecasted that the financial inflow will be significantly smaller compared to the surge experienced by Bitcoin ETFs. This conservative outlook anticipates only 15-20% of the funds invested in Bitcoin ETFs will be mirrored in the Ethereum counterpart.

Market Reactions and Anticipations

Today, Ethereum witnessed a modest but noticeable price uptick by 1%. This rise can be attributed to the growing speculation about the ETF potentially launching by July 2. Investors are aligning their portfolios in anticipation of the ETF approval, although the inflow expectations remain restrained compared to Bitcoin’s financial instruments.

SEC’s Progress and Market Dynamics

The U.S. Securities and Exchange Commission (SEC) has shown steady progress in evaluating the Spot Ethereum ETF applications. While Gary Gensler, the SEC Chairman, has not definitively confirmed approval, his recent remarks have bolstered market confidence. This follows the SEC’s approval of 19b-4 filings from financial titans like VanEck, BlackRock, Fidelity, and Grayscale, which suggests that regulatory hurdles may soon be cleared.

Projected Impact on Ethereum Market

Despite the positive sentiments, it’s important to understand that the Ethereum ETF might only draw a fraction of Bitcoin ETFs’ investment influx. Data indicates that the expected $2.8 billion inflow into Ethereum ETFs might equate to the growth in Ethereum perpetual futures open interest observed since late May. This suggests that the market is already adjusting in anticipation of the ETF launch.

Conclusion

In summary, while the U.S. Spot Ethereum ETF approval is poised to be a landmark event, expectations remain measured compared to Bitcoin ETFs. The SEC’s progress and the current market alignment indicate a constructive yet conservative outlook. Investors are advised to keep an eye on the upcoming dates and regulatory updates to gauge the ETF’s potential impact accurately.