According to Eric Balchunas and James Seyffart, well-known ETF analysts, Ethereum exchange-traded funds are expected to attract up to $6 billion worth of inflows during their first year of trading.
This would equal roughly 20% of the inflows attracted by highly successful Bitcoin ETFs since their launch in January.
The analysts are also convinced that BlackRock and Fidelity will dominate the Ethereum ETF race despite formidable competition.
Where do other analysts stand?
As reported by U.Today, banking giant JPMorgan predicted that Ethereum ETFs would flop with underwhelming inflows. In fact, the banking giant believes that these products might end up attracting only $1 billion worth of inflows this year.
Alex DovbnyaHowever, crypto-native firms are more optimistic. Analysts at Mike Novogratz's Galaxy Digital believe that these ETFs could see $1 billion worth of fresh money per month. Crypto exchange Gemini forecast that they would record $5 billion worth of inflows within just six months.
Ethereum price down
In the meantime, Ethereum ETFs have already started trading in the U.S. In the first 45 minutes of trading, they recorded $200 million in trading volume. Balchunas described the current level of demand as "promising" in a social media post.
Their launch ended up being a sell-the-news event, with Ethereum plunging 2%. The leading altcoin is currently trading at $3,436, according to CoinGecko data.
Following the launch of Bitcoin ETFs in January, the Bitcoin price also underperformed. However, it then went on to hit a new record in March due to massive inflows recorded by these products.
However, it is yet to be seen whether Ethereum ETFs could generate the same level of enthusiasm.
Yuri Molchan
Denys Serhiichuk