Are Ethereum ETFs poised to siphon off a significant portion of Bitcoin ETF investment? All eyes are on the potential launch of spot Ethereum ETFs in the US, and predictions are swirling about how they will perform compared to their Bitcoin counterparts. According to Jag Kooner, head of derivatives at Bitfinex, Ethereum spot exchange-traded funds could capture between a significant percentage of the flows currently directed towards Bitcoin ETFs. But how much exactly?

The consensus seems to be lower than Bitcoin's initial frenzy. Eric Balchunas, a senior ETF analyst at Bloomberg, expects a toned down debut for Ethereum ETFs, anticipating only 20% of the Spot Bitcoin ETF inflows and trading volume. This lower expectation stems from several factors, including investor familiarity and market dynamics.

QCP Capital echoes this sentiment, suggesting Ethereum ETFs are expected to capture 20% of the current Bitcoin ETF investment flow. Their reasoning points to investors’ need for diversification and Ethereum’s unique capabilities, such as its role in DeFi and the broader Web3 ecosystem, making it an attractive addition to existing crypto portfolios.

Despite uncertainty around the reception of the ETH ETF, capturing even 20% of Bitcoin ETF flows could have a significant impact on ETH's price. Some analysts believe this could propel ETH above $4,000, potentially nearing its peak of $4,800. The actual percentage captured will depend on investor appetite, regulatory approvals, and the overall market climate.

Whether it's precisely 20% or a different figure, the arrival of Ethereum ETFs marks a pivotal moment for the cryptocurrency market, offering a new avenue for institutional and retail investors to gain exposure to ETH. The long-awaited arrival, as emphasized by Jag Kooner, is likely to reshape investment strategies and influence the future landscape of crypto ETFs.