Can Ethereum ETFs Capture ‘20%’ of BTC ETFs? This analyst predicts the following

Eric Balchunas, the well-known Bloomberg ETF analyst, warns against overly high expectations surrounding the launch of American spot Ethereum (ETH) ETFs. While the hype surrounding these new products is high, Balchunas predicts that they can only reach about 20% of the market share of Bitcoin (BTC) ETFs. This percentage also represents approximately the amount of ETH’s market capitalization relative to Bitcoin. Is Eric Balchunas right, or can we expect more from Ether ETFs?

Possible market division

Balchunas bases his prediction on ETH’s market share versus BTC in the futures market. He points out that ETH futures currently only account for about 20% of the market share of BTC futures, indicating that a similar split could occur with spot ETFs.

Comparison with precious metals

To support his prediction, Balchunas compares BTC to gold and Ethereum to silver. He points out that just as silver only has 15% of the market share of gold ETFs, Ethereum may not have the same appeal as Bitcoin for investors.

Forecasting capital flows

While US spot BTC ETFs have currently seen total inflows of $13.7 billion, Balchunas predicts that ETH ETFs can only attract around $2.7 billion over the same period. However, this may vary based on different market factors and geographic locations.

Expected launch

Analysts expect the US spot ETH ETF products to potentially launch in July, with predictions that the ETH price could reach $4.5K by then. This launch is expected to change Ethereum market dynamics and potentially attract new investors.