Gemini

Ethereum

Spot

Rise

<p>The post <a href="https://coinpedia.org/news/ether-spot-etfs-to-attract-5b-net-inflows-in-first-6-months-gemini/" rel="noopener noreferrer nofollow">Ether Spot ETFs To Attract $5B Net Inflows in First 6 Months: Gemini</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Ethereum spot ETFs are gearing up for a massive influx, with forecasts suggesting a whopping $5 billion surge in their early stages, courtesy of insights from Gemini. This forecast aligns with earlier predictions from Bitwise and K33 Research.</p>
<p>Wish to know more? Step in!</p>
<h2 class="wp-block-heading" id="h-tracing-ethereum-s-rise"><strong>Tracing Ethereum’s Rise</strong></h2>
<p>According to a <a href="https://www.coindesk.com/markets/2024/07/02/ether-spot-etfs-to-see-up-to-5b-of-net-inflows-in-first-six-months-gemini/?utm_campaign=coindesk_main&amp;utm_medium=social&amp;utm_term=organic&amp;utm_content=editorial&amp;utm_source=twitter" rel="noopener noreferrer nofollow">report</a>, Gemini predicts that Ethereum (ETH) spot ETFs could attract up to $5 billion in net inflows during their first six months of trading in the U.S. Currently, Ethereum holds a 28% share of global assets under management (AUM), highlighting its significant role in the crypto market. Despite being undervalued compared to Bitcoin, Ethereum’s strong position and market dynamics suggest growth potential.&nbsp;</p>
<p>Combined with existing assets from the Grayscale Ethereum Trust, this would push the total AUM for Ethereum spot ETFs in the U.S. to between $13 billion and $15 billion.</p>
<h2 class="wp-block-heading" id="h-catch-up-trade-potential"><strong>Catch-Up Trade Potential</strong></h2>
<p>According to the report, if the Ethereum/Bitcoin ratio returns to its average level from the past three years, Ether’s price could increase by nearly 20% to 0.067 BTC per ETH. If it hits the highest level of the past three years, Ether’s price could rise by 55% to 0.087 BTC per ETH. For spot Ether ETFs, Gemini says that inflows below $3 billion would be disappointing compared to the $15 billion inflows for Bitcoin ETFs.&nbsp;</p>
<p>However, if Ethereum ETFs attract over $5 billion, it would be a strong performance, and anything near $7.5 billion would be a huge success.</p>
<h2 class="wp-block-heading" id="h-comparison-to-bitcoin-etfs"><strong>Comparison to Bitcoin ETFs</strong></h2>
<p>Much like Bitcoin, Ethereum is witnessing a surge in institutional interest. Forecasts indicate that the open interest on the Chicago Mercantile Exchange (CME) could reach 23% of Bitcoin’s, highlighting the growing institutional involvement. These indicators hint that Ethereum is poised to replicate the success of Bitcoin spot ETFs, Bitcoin spot ETFs have seen $56 billion in investments since their launch, with expectations of reaching $100 billion by the end of 2025.&nbsp;</p>
<p>Gemini suggests that net inflows into Ethereum spot ETFs below $3 billion would be disappointing compared to Bitcoin’s $15 billion in the first six months. Still, inflows above $5 billion would be a strong performance. An even greater inflow of up to $7.5 billion would be considered a significant success.</p>
<p>The anticipation of strong ETF inflows and robust on-chain dynamics supports the positive outlook for Ethereum. Due to these factors, Steno Research also forecasts that Ethereum could reach $6,500 later this year.</p>
<h2 class="wp-block-heading" id="h-what-next"><strong>What Next?</strong></h2>
<p>The optimism surrounding Ethereum’s prospects mirrors the craze witnessed in Bitcoin ETFs, which garnered an impressive $58 billion within five months post-launch. Should spot Ether ETFs follow a similar trajectory, they could propel Ethereum to new heights, as institutions diversify their Bitcoin holdings into Ethereum, fostering market stability and growth.</p>
<p><strong>Excited about the future of Ethereum? We are too!</strong></p>

Ether Spot ETFs To Attract $5B Net Inflows in First 6 Months: Gemini

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