Ethereum ETFs Could Achieve $10B AUM in First Year, Predicts Sygnum Bank
“When net inflows turn positive and accelerate, it will significantly drive the price of Ether,” stated Katalin Tischhauser, Head of Investment Research at Sygnum Bank.
Spot Ether exchange-traded funds (ETFs) could reach up to $10 billion in assets under management within their first year, according to Tischhauser, who shared these insights in an interview with Cointelegraph. Tischhauser, formerly of Goldman Sachs, based her projections on forecasts for spot Bitcoin ETFs.
She anticipated that Bitcoin ETFs would attract between $30 billion and $50 billion in their first 12 months, with Ethereum products following suit.
“Given Ethereum's lower name recognition, adoption may be slower,” she noted. With Ethereum’s market cap at a third of Bitcoin’s, Tischhauser expects relative inflows to be between 15-35% of Bitcoin's, forecasting $5 to $10 billion in the first year.
Advantages of Ether ETFs
Tischhauser highlighted the benefits of ETFs for traditional investors, who may not be equipped to handle direct crypto investments. "A regulated product like ETFs makes Ether accessible to investors seeking straightforward investment exposure," she said.
She also pointed out that Ethereum has advantages over Bitcoin, primarily as a leading smart contract platform with numerous applications and use cases. Unlike Bitcoin, which is seen as a store of value, Ethereum derives its value from revenues and cash flows, making it more relatable for institutional investors.
Potential for Ether to Reach $6,000
Despite the launch of Ether ETFs, the asset's price hasn’t surged significantly. Tischhauser believes the market hasn’t yet factored in potential upsides, expecting inflows to be modest. "The price is likely to react strongly to any positive surprises," she explained.
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Strong inflows could boost market sentiment and create demand shocks due to limited ETH supply. Tischhauser suggested that if Ethereum inflows match those of BTC ETFs in the initial months, ETH could reach $6,000.
With the market bearish on ETH ETF inflows, substantial inflows could impact Ethereum more significantly than Bitcoin. Excluding Grayscale’s ETHE fund, which has $6.7 billion in AUM, the eight new ETH funds accumulated $1.5 billion in AUM within their first week of trading.
On July 31, the nine new Ethereum ETFs reversed a four-day outflow trend, showing positive aggregate inflows and indicating growing momentum for these products.
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