Galaxy Digital forecasts that Ethereum exchange-traded funds (ETFs) could become a multi-billion-dollar market upon approval.
The U.S. Securities and Exchange Commission (SEC) is accelerating the approval process, with some analysts anticipating the first approvals as early as next week.
Galaxy’s research suggests ETH ETFs could see inflows of $3 billion to $7.5 billion in the first five months, based on Bitcoin ETF performance.
ETH ETFs are expected to boost Ethereum adoption and legitimize it for institutional investors. Nine issuers, including BlackRock, Fidelity, and VanEck, are competing to launch these ETFs.
Grayscale also plans to convert its Ethereum trust into an ETF, following a similar move with its Bitcoin trust. The SEC has imposed restrictions on these ETFs, such as banning staking for yield, which might limit interest.
Despite this, the launch of ETH ETFs could significantly impact ETH prices due to differences between Bitcoin and Ethereum, like staking programs and supply levels.
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