Share this article
Ether Spot ETFs Could See $5B of Net Inflows in the First Five Months: Galaxy
Ether is more price sensitive to ETF inflows than bitcoin due to the large amount of ETH total supply that is locked up, the report said.
Updated Jun 27, 2024, 2:04 p.m. Published Jun 27, 2024, 9:48 a.m.
- Galaxy said spot ether ETFs could see $5 billion of net inflows in the first five months.
- Demand for the new products is expected to come from independent investment advisors and broker/dealer platforms.
- The lack of staking rewards could limit demand for these spot ETFs, the report said.
Ether spot exchange-traded funds (ETFs), once approved for trading, could see $1 billion of net inflows a month, Galaxy (GLXY) Research said in a report on Wednesday.
“We expect the net inflows into ETH ETFs to be 20-50% of the net inflows into BTC ETFs over the first five months, with 30% as our target, implying $1 billion/month of net inflows,” analyst Charles Yu wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Ether ETFs are close to becoming available for trading in the U.S. after the Securities and Exchange Commission (SEC) approved filings from applicants last month. The regulator must also approve their S-1 filings before the products are cleared to trade. Spot bitcoin ETFs launched in the U.S. in January.
Similar to the bitcoin spot ETFs, new demand for the ether versions is expected to come from independent investment advisors or broker/dealer platforms, the report said.
Ether will be more price sensitive to ETF inflows than bitcoin due to the amount of total supply of ETH that is locked in staking, bridges, and smart contracts, and the lower amount held on centralized exchanges, Galaxy said.
Galaxy cautioned that spot ether ETF demand may be limited due to the lack of staking rewards.
Outflows from the Grayscale Ethereum Trust (ETHE) will also likely be a drag on ether ETF inflows, and Galaxy estimates that these negative flows could be about 319,000 ETH per month or $1.1 billion. Still, due to the smaller percentage of ether held in these trusts the “ETHE ETF conversion will be a relatively smaller drag on ETH price relative than the Grayscale Bitcoin Trust (GBTC) conversion.”
Unlike GBTC, ETHE is not faced with forced selling due to bankruptcy from the likes of 3AC and Genesis, which supports the notion that ether will see less selling pressure related to Grayscale trusts than bitcoin, the report added.
The SEC could approve spot ether ETFs as soon as July 4, according to a Reuters report on Thursday.
Read more: Ether Spot ETFs to Attract $15B of Net Inflows in First 18 Months: Bitwise
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb
The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar.
What to know:
- Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin.
- The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions.
- Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows.
Top Stories
