Sygnum Predicts ETH Spot ETF Inflows to Reach 15% of BTC Due to Low Awareness

IconCryptoNewsTerminal Staff30 Jul, 2024

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Sygnum Predicts ETH Spot ETF Inflows to Reach 15% of BTC Due to Low Awareness

Sygnum, a crypto bank, has predicted that annual inflows into ether spot exchange-traded funds (ETFs) will likely be about 15% of the level seen for similar bitcoin products. According to Sygnum’s head of research, Katalin Tischhauser, the lower inflows are due to ethereum's smaller market cap and lower awareness compared to bitcoin. Tischhauser estimates that the annual inflows into ETH spot ETFs will be in the range of 15–35% of those into BTC, translating into a first-year AUM of $5–10 billion. In comparison, Sygnum estimates that the first 12 months of trading in a bitcoin spot ETF will result in an AUM of $30–50 billion. Despite the lower predicted inflows, Sygnum believes that ETH spot ETFs will play a significant role in the adoption of digital assets by providing investors with a regulated and convenient way to gain exposure to ether.

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