Ethereum spot ETF yearly inflows could be as low as 15% of bitcoin's, Sygnum Bank analyst says

Ethereum spot exchange-traded funds (ETFs) are likely to experience significantly lower inflows during their first year of trading compared to inflows for bitcoin spot ETFs, an analyst said.

"Ethereum’s lesser name recognition is likely to mean slower adoption, and with its market capitalization a third of bitcoin’s, we expect the relative inflows to be in the 15 to 35% range versus bitcoin, with a resulting forecast of $5 to $10 billion in the first year," Sygnum Bank Head of Research Katalin Tischhauser told The Block. The analyst also forecasted that based on current and historical market patterns, spot bitcoin ETFs could attract between $30 billion and $50 billion in inflows over the first 12 months of trading.

Ethereum spot ETFs vs. bitcoin ETFs

Spot Ethereum ETF trading commenced last Tuesday, and these products have experienced negative net flows in their first four days of trading, marked by $1.5 billion in net outflows from Grayscale’s ETHE. In contrast, just over $1 billion in net inflows were recorded into eight competing funds, including BlackRock's ETHA and Bitwise’s ETHW. That compares to a first four-day total net inflow of $1.26 billion for the U.S. spot bitcoin ETFs, which launched in January. 

"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," Tischhauser added.

Ethereum has traded flat over the past 24 hours, now changing hands for $3,318 as of the time of writing, according to The Block's Price Page.