• Ethereum ETFs are expected to capture 20% of the current investment flow into Bitcoin ETFs following investors’ need for diversification and Ethereum’s unique abilities.
• Although analysts depict that initial inflows might be lower than those of Bitcoin ETFs, the approval of Ethereum ETFs will be a tipping point for the whole cryptocurrency market.

The crypto community is going abuzz with excitement as Ethereum ETF awaits approval once legally approved. The highly anticipated Ethereum ETF could see it capturing up to 20% of the current investment flowing into Bitcoin ETFs.

While Bitcoin ETFs have been making headlines, part of the cryptocurrency community thinks that once Ethereum ETF makes its first appearance, is poised to take a bite out of Bitcoin ETF dominance. 

Last week saw Bitcoin ETFs in the US hit a substantial $1.8 billion in inflows, marking a record 19 consecutive days of remarkable demand. This momentum has increased speculations among the crypto community. Many believe that the approval of ETH ETFs would see a significant portion of the capital currently flowing into Bitcoin ETFs running to Ethereum ETFs’ pockets. 

Additionally, others have gone ahead estimating a range from 10% to 20% of the current Bitcoin ETF investment.

The U S Securities and Exchange Commission (SEC) currently holds the keys for the approval of ETH ETF. Currently, the SEC is thoroughly reviewing S-1 registration statements, a crucial step that provides essential disclosures for investors. 

Jag Kooner, Head of Derivatives at Bitfinex, a leading crypto exchange is confident that Ethereum will bite a huge chunk of what Bitcoin ETF is currently holding. In a Post made on X (former Twitter), Jag asserted that Spot Ethereum ETFs could capture up to 20% of the investments currently directed toward Bitcoin ETFs in the U.S. 

Additionally, Jag stated that the approval of ETH ETFs would offer diversification catering to investors’ needs. By incorporating Ethereum ETFs, investors would be able to mitigate risks by spreading their assets across to crypto ETFs. 

Furthermore, Kooner compared the introduction of Gold and Silver ETFs in the early 2000s. Although Gold ETFs started dominating the market in 2004, the introduction of Silver ETFs in 2006 significantly altered investment patterns. The demand for silver grew much faster considering its diverse industrial application. This new introduction presented investors with a new opportunity which could similarly happen with the introduction of Ethereum ETFs.

This occurrence means a similar opportunity could unfold with ETH ETFs.

While Bitcoin ETFs are already trading, their counterparts are still awaiting Regulatory approval from the SEC. With these hurdles, significant financial institutions like Blackrock and Fidelity are eagerly awaiting approval so they can offer Ethereum ETFs to their customers. 

JPMorgan, a top financial player has rather given out a more cautious prediction for Ethereum ETFs. Other crypto analysts have predicted that Ethereum might see net inflows ranging from $2 billion to $4 billion for the remainder of 2024. This is a comparison to Bitcoin ETFs which currently boast an inflow of up to $15.3 Billion. 

Trading at $3,613.08, at press time marking a 4% surge in the last 24 hours, the launch of Ethereum ETFs is expected to be a game-changer for the cryptocurrency arena. With Bitcoin ETFs experiencing exponential growth, ETH ETFs are poised to capture a significant portion of Bitcoin ETFs’ share and the market at large.

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