Gemini predicts spot Ether ETFs could see up to $5 billion in net inflows in the first six months, potentially boosting Ether’s market value and driving a price rally.
Spot Ether (ETH) exchange-traded funds (ETFs) are expected to attract up to $5 billion in net inflows within the first six months of trading, according to a research report by Gemini. This influx could significantly enhance Ether's market standing relative to Bitcoin and drive a substantial price rally.
Key Points:
Projected Inflows: Gemini forecasts that spot Ether ETFs could see up to $5 billion in net inflows within the first six months of trading.
Market Impact: Combined with the current Grayscale Ethereum Trust assets, the total AUM for spot ETH ETFs in the U.S. could reach $13-$15 billion.
Ether vs. Bitcoin: Ether’s market value relative to Bitcoin is near multiyear lows; strong ETF inflows could trigger a catch-up trade, improving Ether's standing.
Potential Rally: If the ether/bitcoin ratio returns to its three-year median, Ether could rally nearly 20%; a return to its maximum would mean a 55% increase.
Benchmark Comparison: Inflows below $3 billion would be considered a disappointment compared to Bitcoin ETFs, which saw $15 billion in six months. Inflows above $5 billion would be seen as a strong performance.
Positive Outlook: Steno Research also predicts Ether could reach $6,500 by the end of the year due to strong ETF inflows and other positive factors.
The launch of spot Ether ETFs in the U.S. is poised to attract significant investment, potentially reshaping the cryptocurrency market dynamics. With substantial inflows anticipated, Ether may experience a notable price rally, enhancing its competitive position relative to Bitcoin.
Source: Coindesk
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