Ethereum Exchange-Traded Funds (ETFs) Will Attract Up to $10 Billion in New Inflows in the Months After Launch and Send Ether (ETH) Prices Soaring to All-Time Highs by the End of the Year

Tom Dunleavy, a managing partner at crypto investment firm MV Global, told Cointelegraph that ETH ETFs are "close to the finish line" and will likely begin trading

Anticipation builds among crypto enthusiasts and investors alike as eight spot ether (ETH)-linked exchange-traded funds (ETFs) await a final signoff from United States regulators.

The funds are broadly expected to begin trading imminently, possibly as soon as this month. Their launch will mark a significant milestone in the crypto industry's efforts to gain wider institutional adoption.

A total of 12 spot bitcoin (BTC) ETFs have already commenced trading on various exchanges in the United States since January. According to ETF.com, these funds collectively manage around $15.9 billion.

Now, as the ETH ETFs inch closer to launch, key questions remain regarding the volume of inflows they can attract, the impact on ETH prices, and whether the benefits will extend to other altcoins.

Speaking to Cointelegraph, Tom Dunleavy, managing partner at crypto investment firm MV Global, shared his expectations for the upcoming ETH ETFs.

According to Dunleavy, a “base case” for the next few months would be to expect roughly $1 billion in flows per month into the ETH ETFs. He noted that compared to BTC, which is “very available on exchanges [meaning] thicker order books and more to purchase,” ETH's spot price will be “even more responsive to buying demand from ETFs than BTC.”

“We saw $15 billion in flows for Bitcoin. I think we’re probably going to see $5 to $10 billion for Ethereum,” said Dunleavy. “I expect a very positive price impact sending us to new all-time highs by early Q4.”

Highlighting the differing narratives around BTC and ETH, which may influence how financial advisors present and sell the assets to clients, Dunleavy wrote in a Q2 investor memo shared with Cointelegraph:

“The BTC ETF led to a price appreciation of 36% from the January 10th launch date to the peak and >50% from the time of initial speculation and rumors. We believe that there will be strong buy pressure with a much more clear narrative that traditional investors can understand. ETH has cashflows. It can be described as a tech stock, the app store of crypto, or an internet bond […] This is a much easier sell for financial advisors than ‘digital gold’.”

Dunleavy further noted that while ETH's performance this year has indeed trailed BTC's, with relatively deeper drops during downturns, he doesn't expect a strong rebound in ETH's performance to necessarily filter into other altcoins. This is partly due to a lack of overlap between crypto's institutional and retail markets, he said.

“The people buying the ETH ETF upstairs are not going to be users who were on-chain. They're going to be users who were holding the stuff in their 401k,” Dunleavy explained.

According to data from Cointelegraph Markets Pro and TradingView, the price of ETH has dropped 23% so far in 2023 after kicking off the year at $3,663. At the time of writing, ETH trades at $3,107 following a 1.7% gain over the past 24 hours and a 7.3% loss over the last seven days.

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