ETH Spot ETF Expected to See $3 Billion in Net Inflows in Year After Approval, Lower Than BTC, While SEC Requires 'S-1 Amendment'

“ETH spot ETFs will see much lower demand than BTC spot ETFs,” JPMorgan said in a research report on Thursday (local time). “We expect ETH spot ETFs to see net inflows of up to $3 billion this year. If staking is allowed, net inflows could rise to as much as $6 billion. However, ETH is not the same as BTC, which competes with gold and is already a market leader. An ETH spot ETF would have fewer assets under management and less liquidity, making it less attractive to investors. In particular, the initial reaction to the launch is likely to be negative. Speculators who entered the market in anticipation of the Grayscale ETH Trust (ETHE) converting to an ETF will take profits. There is a potential outflow of $1 billion from ETHE, which will drag the price of ETH down.”

Meanwhile, the US Securities and Exchange Commission (SEC) has asked applicants for an Ethereum (ETH) spot ETF to file updated (amended) versions of their registration statements (S-1) by Friday (local time), The Block reported, citing multiple sources. “The SEC will then provide the first round of feedback on the S-1s to the applicants, who will then submit a second round of amendments,” the media reported. Currently, VanEck and BlackRock have filed updated versions of their S-1s. It is likely that at least two more amendments will be filed before the final S-1 is filed, sources said.”