Bitwise Chief Operations 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 cap of Ethereum on July 26th, compared to Bitcoin and data from the international ETP market.
Hougan’s prediction is based on the analysis of the market cap of ETH and BTC. As of the time of writing, the market cap of Bitcoin is $1.21 trillion, while the market cap of Ethereum is $41.4 billion, indicating that the investment ratio for Bitcoin ETFs is approximately 74%, and for Ethereum ETFs, it is approximately 26%.
Based on this ratio, he predicts that as these products mature and gain recognition from platforms such as Morgan Stanley, by the end of 2021, the assets under management (AUM) of US spot BTC ETFs will increase to at least $202.5 billion.
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International ETP market
Hougan also examined the Bitcoin and Ethereum data in the European and Canadian ETP markets. In Europe, Bitcoin ETPs occupy 78% of the market share, while Ethereum ETPs occupy 22% of the market share.
Similarly, in Canada, BTC ETPs hold 77%, and ETH ETPs hold 23%. These ratios roughly align with the relative market values of Bitcoin and Ethereum, reflecting the normal distribution of demand from ETP investors.
