A projected influx of $15 billion looms over the cryptocurrency market as spot Ethereum ETFs pick up momentum, per a recent analysis by Bitwise Chief Investment Officer Matt Hougan. He proposes a significant increase in investments expected within the next 18 months.
Hougan’s analysis begins with comparing the market cap proportions of Bitcoin and Ethereum. Currently, Bitcoin leads with a 74% share of the total market value, leaving Ethereum with 26%. U.S. spot Bitcoin ETFs currently hold about $56 billion in assets, a number expected to rise to $100 billion by late 2025, according to Hougan’s projections.
Similarly, he initially anticipated a $35 billion influx for spot Ethereum ETFs to achieve parity. Now, there are some adjustments. The planned transformation of the Grayscale Ethereum Trust into an ETP could introduce $10 billion in assets immediately, with the possibility of an additional $25 billion in new inflows.
Furthermore, Hougan analyzed data from the current crypto ETPs in Europe and Canada. In both regions, Ethereum offerings consistently represent approximately 22-23% of the total assets under management (AUM) in crypto ETPs. By concluding this ratio to the U.S. market and factoring in the existing Grayscale Ethereum Trust (ETHE) assets, the projected net inflows are adjusted to $18 billion.
SEC’s update on spot Ethereum ETFs approval process
Meanwhile, at the Bloomberg Invest Summit held on June 25, SEC Chair Gary Gensler provided an update on the progress of the Spot Ethereum ETF approval process. Gensler highlighted the ongoing collaboration with issuers on S-1 filings.
However, he suggested that the launch of the second crypto-based ETF in the U.S. could potentially take place in July. Even with this positive news, Gensler still criticizes the larger crypto market. He pointed out problems like not following rules and not giving enough information to the public.
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