Gemini Research Report: Potential Impact of Spot Ether ETFs in the U.S.

According to a research report by Gemini, spot ether (ETH) exchange-traded funds (ETFs) could attract net inflows of up to $5 billion within the first six months of trading in the U.S. This would bring the total Assets Under Management (AUM) for spot ETH ETFs in the U.S. to an estimated $13 billion-$15 billion during the initial period.

Gemini highlighted that despite ether’s market value relative to bitcoin being near multiyear lows, the anticipated inflows could help improve ether’s standing compared to bitcoin. The report also emphasized the potential for an “ETH catch-up trade” in the near future, considering factors such as robust on-chain dynamics and a thriving stablecoin environment.

Ether spot ETFs are poised to commence trading in the U.S. in the near future following the Securities and Exchange Commission’s (SEC) approval of initial filings from issuers in May. Notably, bitcoin spot ETFs were approved for trading in the U.S. in January of this year.

If the ether/bitcoin ratio were to revert to the median value of the past three years, it could surge by nearly 20% to 0.067. A return to the maximum ratio of 0.087 would signify a substantial 55% rally, as outlined in the report.

Gemini stated that net inflows into spot ether ETFs below $3 billion would be considered disappointing, given that bitcoin ETFs attracted $15 billion in inflows during the first six months. In contrast, net inflows exceeding $5 billion would be viewed as a strong performance, with figures close to 50% or $7.5 billion representing a significant upside surprise.

These positive projections align with recent comments from Steno Research, which suggested that ether could reach $6,500 later this year fueled by strong ETF inflows and other favorable market dynamics.