Sygnum Bank analyst predicts Ethereum spot ETF annual inflows may only reach 15% of bitcoin’s

Sygnum Bank analyst suggests that Ethereum spot ETFs might see yearly inflows as low as 15% compared to bitcoin

Sygnum Bank analyst– According to Sygnum Bank’s Head of Research Katalin Tischhauser, Ethereum spot exchange-traded funds (ETFs) are expected to attract significantly lower inflows in their inaugural year compared to bitcoin ETFs. Tischhauser noted that Ethereum’s lower name recognition and smaller market capitalization, which is about a third of bitcoin’s, could result in relative inflows ranging from 15% to 35% compared to bitcoin. The forecast anticipates Ethereum ETFs to generate between $5 billion and $10 billion in inflows during the first year. In contrast, Tischhauser projected that spot bitcoin ETFs could see inflows between $30 billion and $50 billion based on current and historical market trends.

Last Tuesday marked the launch of trading for Spot Ethereum ETFs, which saw negative net flows in their initial four days, with Grayscale’s ETHE experiencing $1.5 billion in net outflows. Conversely, competing funds like BlackRock’s ETHA and Bitwise’s ETHW saw just over $1 billion in net inflows during the same period. In contrast, U.S. spot bitcoin ETFs, launched in January, recorded a total net inflow of $1.26 billion in their first four days of trading.

With $17.6 billion net inflows to date, an expected second wave of spot bitcoin inflows as the governance processes at various institutions gradually conclude is likely to bring in at least the same level of inflows over the next 6 months, and possibly more as BlackRock has repeatedly indicated interest from very large traditional institutions such as sovereign wealth funds, endowments, insurers, pension funds.

Katalin Tischhauser

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