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Ethereum Spot ETFs Net Inflows to Reach $5 Billion in First Six Months!

Key Points:

Gemini predicts Ethereum spot ETFs in the U.S. could attract up to $5 billion in net inflows within the first six months.
Combining these inflows with Grayscale Ethereum Trust assets, the total AUM for spot ETH ETFs could reach $13-15 billion.
If the Ether/Bitcoin ratio returns to past medians, ETH could rally 20-55%, potentially hitting $6,500 this year, per Steno Research.

A research report published by Gemini pegs that Ethereum spot ETFs could amass up to $5 billion of inflows within the first six months after getting the green light to trade in the US.

Adding this forecast to the current AUM of Grayscale Ethereum Trust would insinuate AUM for spot ETH ETFs in the US of around $13 billion to $15 billion by then.

Gemini has noted that Ether’s market value about bitcoin stands near multiyear lows. The expected inflows from spot ETH exchange-traded funds may strengthen this setup. “Given the AUM comparable in international ETF markets, robust on-chain dynamics, and differentiating factors such as a thriving stablecoin environment, there is favourable risk-reward of an ETH catch-up trade in the months to come,” said Gemini.

Gemini Predicts Significant Inflows for Ethereum spot ETFs

The SEC has already approved the initial filings for Ethereum spot ETFs, which are expected to begin trading within the next few months. This occurred after bitcoin spot ETFs were allowed to trade in the United States in January this year.

Gemini’s report further speculates that if the ether/bitcoin ratio returns to the median value of the past three years, it could appreciate 20% to 0.067. A return to the maximum value of 0.087 would represent a 55% rally.

Gemini also noted that net inflows below $3 billion for the Ethereum spot ETFs would be a disappointment since information for bitcoin ETFs in their first six months saw $15 billion in inflows. A strong performance would show up from above $5 billion inflows, while inflows near $7.5 billion, nearly 50% of the levels of bitcoin ETFs, would be a “significant upside surprise.”

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.