Bitwise Says Ether Spot ETF Will Attract $15B Inflow in First 18 Months
Bitcoin exchange-traded fund (ETF) issuer and asset manager Bitwise has stated that the soon-to-be-launched Ethereum spot ETF product would attract $15 billion in its first eighteen months of trading.
“Everyone wants to know how much spot exchange-traded products (ETPs) will attract in net flows. My answer: $15 billion in their first 18 months,” Bitwise’s Chief Investment Officer Matt Hougan said in a blog post on Monday.
Data-Backed Speculations
Hougan based his data-backed speculations on the relative size of Bitcoin and Ethereum. He stated that the largest and second-largest crypto assets have a market cap of $1.2 billion (74%) and $432 million (26%), respectively, and he expects investors to allocate to these assets in that proportion.
Currently at $53.4 billion, the asset manager expects Bitcoin ETF’s asset under management (AUM) to reach $100 billion by the end of 2025. Bitwise further noted that using the $100 billion as a benchmark, Ethereum spot ETF’s AUM would have to get to $35 billion to match Bitcoin’s, a process it says would take 18 months.
Hougman also pointed out that Grayscale’s Ether Trust already has $10 billion in assets; hence, chalking that off the equation would mean the spot ETF would need $25 billion to reach parity. It is worth noting that Grayscale’s GBTC brought huge selling pressure to the Bitcoin spot ETF after its launch in January.
“A strong bull market for ETH as an asset would significantly increase demand. Still, I think $15 billion in the next 18 months is a good starting point. My gut tells me we’ll do better than that; ETH is a compelling asset powering the world’s most versatile blockchain,” Hougan stated.
Launch Process Going Well
When quizzed about the progress of the Ether ETF launch, the Securities and Exchange Commission’s (SEC) boss, Gary Gensler, stated that it was going smoothly.
“I don’t know the timing, but it’s going smoothly,” Gensler stated when asked when the market will see Ether ETF in the next few weeks.
The SEC boss noted that the process has passed the staff approval phase and is now in the registration or disclosure statement phase. He said that the SEC expects the asset managers to make full disclosures so that the registration statements can go through effectively.
Analysts have speculated that the Ethereum ETF should start trading as early as July 2. On Friday, about eight applicants filed an updated 19-b document.
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