Expectations for Ethereum ETF Assets Compared to Bitcoin ETF and Analysis of Potential Price Impact
Publication Time:2024-07-23 15:42:09
In its latest report, crypto market maker Wintermute points out that the Ethereum Exchange Traded Fund (ETF) is expected to attract between $3.2 billion and $4 billion in investment over the next year. Meanwhile, the Bitcoin ETF is expected to accumulate around $32 billion in assets by the end of the year. This comparison shows that the potential asset scale of the Ethereum ETF is only 10% to 12.5% of that of the Bitcoin ETF, reflecting that Ethereum as an investment tool has relatively lower appeal. Wintermute further analyzes that without a staking mechanism, the attractiveness of Ethereum as an ETF investment will be affected. Typically, investors lock their assets on the network to receive a 3% yield paid in Ethereum. However, the current form of the Ethereum ETF does not provide this yield opportunity, which may deter investors from seeking other investment channels. Nevertheless, the report remains optimistic about the future performance of Ether, expecting a price increase of 18% to 24%, up to $4,200, under the aforementioned conservative estimates. While this target falls short of the historical high of $4,800 reached in 2021, it still demonstrates the growth potential of the Ethereum market.
Ethereum ETF
Bitcoin ETF
Price Forecast
staking mechanism
asset attraction