Spot Ethereum ETFs are expected to ensure a steady and significant capital inflow over time, according to Binance CEO Richard Teng, as reported by Cointelegraph.
The expert expressed skepticism regarding the scale of inflows into these products following their listing.
“It is unlikely they will be dramatic at the initial stage. Inflows will fluctuate depending on various macroeconomic factors,” he explained.
Teng believes that the liquidity of ETFs could grow exponentially due to the gradual increase in interest from institutional players.
“Such participation can ensure a steady and significant capital inflow over time,” he explained.
According to the Binance CEO, the first wave of products will provide more opportunities for a wide range of investors. This will address key issues related to legitimacy, compliance, and security, making them an attractive investment option overall, the specialist added.
On July 18, the SEC approved applications for the launch of mini-ETFs based on Ethereum from Grayscale and a spot exchange-traded fund from ProShares. Trading of these instruments is expected to begin on July 23, by which date other issuers of spot ETH-ETFs will have fully complied with regulatory requirements.
Steno Research has forecasted a net inflow of $15-20 billion into future funds within a year and an increase in Ethereum’s price to $6500.
K33 Research estimated inflows into the products at $3.1–4.8 billion in the first five months after trading begins.
Earlier, QCP Capital predicted a rise in Ether to $4800 following the approval of ETH-ETFs. Experts believe that demand amounting to 10-20% of the inflow into Bitcoin funds will trigger positive movement.