Ether ETFs May See Annual Flows Between $4.8B – $6.4B: Wintermute
Crypto market maker Wintermute said the new spot Ether exchange-traded funds (ETFs) could see annual flows in the $4.8 – $6.4 billion range. This in turn could result in a 17.9% to 23.87% price increase in Ether.
The U.S. Securities and Exchange Commission (SEC) has approved several spot Ether ETFs, after weeks of registration statement revisions. The approval of Ether products in the US marks another significant milestone in the crypto market.
The SEC gave the green light to Ether ETF registration forms from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy, with forms for the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust also going into effect.
Wintermute notes that the newly launched spot Bitcoin ETFs accumulated $13.8 billion in the first 100 days of trading earlier this year.
“Our view is the ETFs will likely see lower-than-anticipated demand, closer to $3.2 – $4 billion. This is driven by the absence of a staking mechanism diminishing Ethereum’s appeal as an ETF vehicle, and by the lack of a shared narrative to attract investors,” said Wintermute in a research note shared with CryptoNews.
The journey towards Ether ETF approval has been characterized by a series of critical regulatory changes and milestones.
Analysts are optimistic about the launch and predict substantial inflows into these ETFs, although exact figures are speculative at this stage.
A notable aspect of the SEC’s approval is the ban on staking within these ETFs, notes Wintermute.
Ethereum’s shift from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism with Ethereum 2.0 has significantly enhanced its energy efficiency.
Staking has become an important component of the Ethereum ecosystem,
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