Will Ethereum ETFs Fail? Opinions Are Mixed

Alex Dovbnia

JPMorgan Predicted Ethereum ETFs Would Fail, But Some Other Analysts Think They Will Succeed

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Leading analysts and experts are divided when it comes to predicting the performance of Ethereum exchange-traded funds (ETFs) following their highly anticipated launch.

Bloomberg’s James Seyffart recently discussed this sentiment. The analyst claims that half of his audience thinks Ethereum ETFs attracting at least 20% of the assets recorded by Bitcoin ETFs would be considered extremely bearish. Meanwhile, the other half would view such inflows as extremely bullish. “Nobody knows anything,” the analyst summarized.

For example, the banking giant JP Morgan is confident that they will attract only a small fraction of the flows seen by Bitcoin ETFs. Its researchers have estimated that its flows could be as low as $1 billion this year. That, of course, would not bode well for Ether bulls given the dominance of ETF talk in recent months.

Mike Novogratz’s Galaxy Digital is much more optimistic, predicting that these products could attract up to 50% of net flows in Bitcoin ETFs in just five months. Cryptocurrency exchange Gemini has predicted that Ether ETFs could generate up to $5 billion in inflows.

It should be noted that the launch of Ethereum futures ETFs was a massive failure with “Scandalously low” volumesThis is unlikely to be the case for spot ETFs due to the involvement of big names such as Blackrock and Fidelity, but it remains to be seen whether they will be able to hold a candle to their Bitcoin counterparts.

As reported by U.TodayThe SEC is expected to finalize approval of several Ethereum spot ETFs this month after several potential offerings submitted their S-1 forms earlier today.

About the Author

Alex Dovbnia

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.

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