The cryptocurrency landscape may be underestimating the significant potential of forthcoming spot ether (ETH) exchange-traded funds (ETFs) in the United States. Steno Research’s recent report illuminates the anticipated influx of capital, predicting net inflows could escalate to $20 billion within the first year, driven by ether’s unique allure to Wall Street investors.

Anticipated Market Influx and Price Surge

Senior analyst Mads Eberhardt of Steno Research asserts, “We project net inflows ranging between $15 billion and $20 billion over the first twelve months, accounting for the outflows from the Grayscale Ethereum Trust (ETHE).” This substantial capital injection is expected to bolster ether’s value both in dollar terms and relative to bitcoin (BTC), with forecasts setting ether’s price target at $6,500 by year’s end, buoyed by these inflows and additional favorable factors.

Imminent Trading of Spot Ether ETFs

The U.S. Securities and Exchange Commission (SEC) recently approved filings from issuers, paving the way for spot ether ETFs to commence trading imminently. Once the S-1 filings receive final approval, trading could begin as early as next week, according to industry reports.

Comparative Impact on Ether and Bitcoin

Steno Research’s analysis indicates that if projected inflows materialize, the ether/bitcoin ratio is likely to climb to 0.065 later this year. The report highlights, “A modest inflow into ether ETFs, in contrast to bitcoin ETFs, will exert a more pronounced effect on ether due to its relatively smaller market capitalization and significantly lower liquidity.” Consequently, inflows into ETH spot ETFs are poised to exceed expectations, with upward surprises being more probable than downward ones.

Diverse Forecasts Among Analysts

While Steno Research maintains a bullish stance on ether ETF flows, other analysts offer varied perspectives. Galaxy (GLXY) Research anticipates spot ether ETFs could attract $5 billion in net inflows within the first five months. Meanwhile, asset manager Bitwise forecasts $15 billion in net inflows over the first eighteen months.