Ethereum ETFs are expected to attract $569 million per month

The approval of the US Securities and Exchange Commission (SEC) Ethereum spot ETF was a big step for the cryptocurrency market.

The regulator's decision follows the earlier approval of the Bitcoin Spot ETF, prompting significant capital inflows into BTC.

Ethereum ETFs can register huge profits after launch.

Prominent crypto analyst Bobby Banzai predicts $569 million in monthly revenue for the Ethereum ETF after trading begins. His forecast is based on global ETF values ​​and Chicago Mercantile Exchange (CME) futures open interest data, which shows that ETH's price is around 19% higher against BTC.

“After 137 trading days on May 27, Bitcoin flows reached $13.6 billion, with a monthly ETH ETF flow rate of $569 million,” the researcher noted.

Bobby Banzai says the success of Bitcoin ETFs has encouraged providers to introduce Ethereum ETFs. Firms like Hashdex, VanEck, and Bitwise have previously published high-quality ads for their BTC ETFs. A similar marketing effort for ETH ETFs can lead to higher returns. Bloomberg analyst Eric Balchunas suggests that the newly approved instruments could account for up to 20% of the Bitcoin ETF market.

Read more: Ethereum ETF explained: what it is and how it works

However, analysts at JPMorgan warn that the initial market reaction may be negative, predicting that ETH ETFs could see $1 billion to $3 billion in 2024 if launched before the end of the year. Arguably, without putting up a yield, an ETH ETF could be just as attractive.

Investors who buy, own, and hold ETH can earn rewards, which provide additional yield. In contrast, Ethereum ETFs offer exposure to ETH prices without any leverage.

Read more: How to invest in Ethereum ETFs?

However, Ethereum's value, supported by its usefulness in transactions, smart contracts and decentralized applications (DApps), has set it up for massive expansion. Industry experts such as BlackRock co-founder Larry Fink and MicroStrategy CEO Michael Saylor hailed the ETF's approval as a major development.

“Bitcoin appears to be the only asset approved by the Wall Street establishment and offered as a one-stop ETF and circulated as a legitimate cryptocurrency,” said Michael Seiler.

As optimism grows, the price of Ethereum is up 33% at the time of writing, trading at $3,815. It's up 33% since May 15. With ETH trading at a six-year low, the expected demand for Ethereum ETFs could further boost its value.