Bitwise’s Chief Operating Officer, Matt Hougan, predicts that Ethereum exchange-traded funds (ETFs) will see a net inflow of $1.8 billion within the first 15 months of trading. This forecast is based on data from the market value of Ethereum compared to Bitcoin, as well as data from the international ETP market.
Hougan’s prediction is derived from an analysis of the market values of ETH and BTC. As of the time of writing, Bitcoin’s market value is $1.21 trillion, while Ethereum’s market value is $41.4 billion. This indicates that the investment proportion for Bitcoin ETFs is approximately 74%, while Ethereum ETFs account for about 26%.
Based on this proportion, he expects that as these products mature and gain recognition from platforms like Morgan Stanley, the assets under management (AUM) for US spot BTC ETFs will increase to at least $202.5 billion by the end of 2021.
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International ETP market
Hougan also studied the data of Bitcoin and Ethereum in the European and Canadian ETP markets. In Europe, Bitcoin ETPs hold a 78% market share, while Ethereum ETPs hold a 22% market share.
Similarly, in Canada, BTC ETPs hold 77%, while ETH ETPs hold 23%. These ratios roughly align with the relative market values of Bitcoin and Ethereum, reflecting a normal distribution of ETP investor demand.
