Ethereum

Bank

Bitcoin ETF

Spot Ether exchange-traded funds could amass as much as $10 billion in assets under management within their first year of trading.
Katalin Tischhauser, Head of Investment Research at Sygnum Bank and a former executive at Goldman Sachs, told Cointelegraph in an interview that the projections are based on her forecast for spot <a href="https://cointelegraph.com/news/bitcoin-65k-price-united-states-federal-reserve-rate">Bitcoin</a> ETFs. 
She predicted that Bitcoin ETF inflows would be in the $30 billion to $50 billion range for the first 12 months of trading, and Ethereum products would follow.
“Ethereum’s lesser name recognition is likely to mean slower adoption,” she said before adding:
<blockquote>
 “With Ethereum’s market capitalization a third of Bitcoin’s, we expect the relative inflows to be in the 15-35% range versus Bitcoin, with a resulting forecast of $5 to $10 billion in the first year.” 
</blockquote>
<h3 id="ether-etfs-offer-advantages-over-bitcoin">Ether ETFs offer advantages over Bitcoin</h3>
The researcher said that there were significant advantages to <a href="https://cointelegraph.com/news/crypto-etfs-hit-model-portfolios-toward-year-end-blackrock">ETFs</a> for traditional investors because they are mostly not set up to trade, settle, and risk-manage direct crypto investments. 
<blockquote>
 “A familiar regulated product such as ETFs makes Ether easily accessible to investors who are interested in simple investment exposure."
</blockquote>
She added that <a href="https://cointelegraph.com/explained/ethereums-next-upgrade-prague-electra-pectra-explained">Ethereum</a> investments offered certain advantages over Bitcoin, which is considered a store of value asset.
<blockquote>
 “Ethereum, as the leading smart contract platform, is the best single asset proxy for the crypto industry with its multitude of applications and use cases."
</blockquote>
Tischhauser added that as Ether&nbsp;primarily derives its value from revenues and cashflows rather than as a safe-haven asset, it is also “more relatable for traditional institutional investors than the concept of digital gold.”
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/daf41350-05e3-4d46-baf7-c21060bc099b.png" alt="Ethereum ETFs could reach $10B AUM in first year: Sygnum Bank">
 <figcaption style="text-align: center;">
 US spot ETH ETF flows. Source: Farside Investors
 </figcaption>
</figure>
<h3 id="ether-could-hit-6-000-if-inflows-keep-coming">Ether could hit $6,000 if inflows keep coming</h3>
Despite the launch of <a href="https://cointelegraph.com/explained/what-are-ether-futures-etfs-and-how-do-they-work">Ether ETFs</a>, the price of the asset hasn’t gained much.&nbsp;Tischhauser believes the market had not priced in any upside as it expects inflows to be underwhelming.
<blockquote>
 “This means that the price is likely to react strongly to any positive surprises. When the net flows turn positive and accelerate, this will be a strong driver for the price of Ether.”
</blockquote>
She explained that strong inflows would have two impacts: pushing up market sentiment and creating demand shocks as the liquid supply of ETH is limited, but admits that this could take some time.&nbsp;
Tischhauser noted that if Ethereum inflows are proportionally similar to those for BTC ETFs over the first couple of months, ETH prices could reach $6,000. 
As the market is bearish on ETH ETF inflows, Tischhauser expects any substantial inflows into the ETFs to have a bigger impact on Ethereum than Bitcoin. 
Related: <a href="https://cointelegraph.com/news/crypto-etfs-hit-model-portfolios-toward-year-end-blackrock">Crypto ETFs to hit ‘model portfolios’ toward year end — BlackRock</a>
Excluding Grayscale’s ETHE fund, which has $6.7 billion in AUM, the eight new ETH funds have already reached $1.5 billion in AUM in their first seven days of trading. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/6a3db1dc-5196-40d9-8962-1643ac2e2278.jpg" alt="Ethereum ETFs could reach $10B AUM in first year: Sygnum Bank">
 <figcaption style="text-align: center;">
 ETH has been trading sideways for 5 months. Source: Tradingview
 </figcaption>
</figure>
On July 31, the nine new Ethereum ETFs <a href="https://cointelegraph.com/news/spot-ethereum-etfs-flip-positive-after-34m-inflow-july-30">reversed</a> a four-day outflow trend with a day of positive aggregate inflows indicating that the new products are already gaining momentum. 
Magazine: <a href="https://cointelegraph.com/magazine/ethereum-ico-blockchain-forensics-double-spending-debate/">Decade after Ethereum ICO: Blockchain forensics end double-spending debate</a>

Ethereum ETFs could reach $10B AUM in first year: Sygnum Bank

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