Galaxy Research: Ether Spot ETFs May See $5 Billion in Net Inflows in First Five Months

June 27 (Bloomberg) -- Ether spot ETFs could reach $1 billion in monthly net inflows once they are allowed to trade, Galaxy Research said in a report Wednesday, according to Coindesk. It expects net inflows into ETH ETFs to reach 20-50% of net inflows into BTC ETFs in the first five months, with Galaxy targeting 30%, which would imply $1 billion in net inflows per month.

Meanwhile, Galaxy warned that demand for spot Ether ETFs could be limited due to a lack of pledged incentives. Outflows from grayscale ethereum trusts (ETHEs) could also be a drag on ethereum ETF inflows, with Galaxy estimating that these negative outflows could amount to about 319,000 ETH or $1.1 billion per month. However, due to the small percentage of Ether held by these trusts, ETHE ETF conversions will be a relatively small drag on the Ether price compared to grayscale Bitcoin Trust (GBTC) conversions.