Ethereum ETFs Could Surge to $10 Billion in AUM by Year’s End, Sygnum Bank Projects

• A Financial analyst has predicted that Ethereum ETFs are on track to amass a staggering $10 billion in assets under management (AUM) by the end of the year.
• Additionally,Katalin highlighted that if EtherETFs’ inflows mirror those of Bitcoin ETFs in the early months, ETH could rally to $6000.

Undeniably, Ethereum ETFs experienced a challenging launch with limited inflows and significant outflows. However, that is not the case currently, after a period of outflows, they’re now stabilizing. The resurgence has ignited heightened discussions, with analysts providing varied perspectives.

Notably, Katalin Tischhauser, Head of Investment Research at Sygnum Bank and a former Goldman Sachs executive has come out strong sharing strong predictions for Ethereum ETFs. According to Katalin, Ethereum exchange-traded funds are on track to amass a staggering $10 billion in assets under management (AUM) by the end of the year.

This strong prognostication stems from her previous forecast where Katalian predicted that Bitcoin ETF inflows will potentially reach between $30 billion and $50 billion in the first year alone. 

Given that Ethereum may not match Bitcoin’s level of recognition, Katalin argues that despite the shortcoming, Ethereum ETF’s inflow will, however small, still be substantial. Additionally, “With Ethereum’s market capitalization a third of Bitcoin’s, we expect the relative inflows to be in the 15-35% range versus Bitcoin,” she explained.  In essence, EtherETFs inflows will range from $5 to $10 billion in their first year.

It is worth noting that ETFs offer traditional investors who wish to explore the cryptocurrency landscape a regulated and straightforward entry point. Vouching for Ether ETFs, Katalin highlighted that traditional investors are not fully equipped to exploit the cryptocurrency landscape straight on therefore “A familiar regulated product such as ETFs makes Ether easily accessible to investors who are interested in simple investment exposure,” she noted.

Given that only Bitcoin and Ethereum ETFs currently exist, Bitcoin is often characterized as a store of value, while  “Ethereum, as the leading smart contract platform, is the best single asset proxy for the crypto industry with its multitude of applications and use cases,” she stated.

With EtherETFs making a comeback, ETH Ethereum’s native token is not matching the efforts. At the time of writing, ETH is swapping hands with $3,194.23 marking a 3.68% decline in the last 24 hours. Tischhauser blames market doubt and anticipated low investment. A CNF earlier report stated that one market analyst believes that the Ethereum ETFs have arrived ahead of their time. Nevertheless, Katalin thinks unexpected inflows could substantially affect Ether’s value. Tischhauser explained:

This means that the price is likely to react strongly to any positive surprises. When the net flows turn positive and accelerate, this will be a strong driver for the price of Ether,

Ethereum Poised for a $6000 All-Time High

According to Katalin, these “surprise” inflows into EtherETFs could ignite high investor confidence and therefore create significant buying pressure.  Due to the high demand and low supply concept, Tischhauser predicts that Ether’s price could surge to $6,000. 

Additionally, Ktalain highlighted that if Ethereum inflows mirror those of Bitcoin ETFs in the early months, Ether could rally to a new all-time high.