Ethereum ETF Will Raise $15 Billion According to Bitwise Director
Bitwise COO Matt Hoogan predicts that Ethereum spot exchange-traded funds (ETFs) will see a net inflow of $15 billion in the first 18 months of trading.
Hougan share this forecast on June 26, based on the market capitalization of Ethereum compared to Bitcoin and data from international ETP markets.
Hougan's prediction stems from an analysis of the market cap of ETH versus BTC. At the time of writing, Bitcoin's market cap is $1,21 trillion, while Ethereum's is $414 billion, suggesting a proportional investment allocation of about 74% for the Bitcoin ETF and 26% for the Ethereum ETF.
Based on this proportionality, he expects assets under management (AUM) of US spot BTC ETFs to increase to at least $100 billion by the end of 2025 as these products mature and gain acceptance on platforms such as Morgan Stanley.
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Hougan also looks at data from the European and Canadian ETP markets for Bitcoin and Ethereum. In Europe, Bitcoin ETPs hold 78% of the market and Ethereum ETPs hold 22%.
Similarly, in Canada BTC ETPs hold 77% and ETH ETPs hold 23%. These ratios are roughly in line with the relative market capitalization of Bitcoin and Ethereum, reflecting the normal distribution of demand among ETP investors.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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