Bloomberg ETF analyst James Seyffart anticipates that spot Ethereum ETFs could capture between 20% to 25% of the demand observed for spot Bitcoin ETFs. Seyffart shared his perspective during an interview with Bitwise, noting that his colleague Eric Balchunas estimates the new funds might attract 15% to 20% of the demand.

Seyffart compared these forecasts with Ethereum's market cap, which is approximately 30% of Bitcoin's $1.4 trillion valuation, referring to his estimate as a "discount" in this context. He attributed this discrepancy to certain inherent limitations of each product. Unlike Ethereum holders who can stake and earn yield, ETH ETF investors won't have this opportunity. Additionally, Ethereum offers greater on-chain utility than Bitcoin, which ETF investors won't directly access.

Seyffart emphasized, "The gap between Ether as an ETF and Ether itself ... is a little wider than the gap between Bitcoin and Bitcoin as an ETF wrapper."

He pointed out that Ethereum futures ETFs, which have only captured 12% of assets compared to Bitcoin futures ETFs in the US, aren't a reliable benchmark for estimating demand. In foreign markets, ETH futures ETFs hold between 20% to 30% of Bitcoin futures ETF assets.

Looking ahead, Seyffart predicted that spot ETH ETFs would see substantial launches, though not as large as those of spot Bitcoin ETFs. He expects there will be significant demand for these products.

Bitwise CIO Matt Hougan echoed this sentiment, foreseeing significant demand for spot Ethereum ETFs. Hougan suggested that demand would stem from investors seeking diversification and viewing Ethereum as a high-growth tech investment due to its applications in stablecoins, NFTs, DeFi, gaming, and social apps.

The SEC's approval of 19b-4 rule changes on May 23 paves the way for exchanges to list and trade several pending spot ETH ETFs, including Bitwise's proposed fund filed through NYSE Arca. However, specific launch dates remain uncertain, with expectations ranging from weeks to before November according to different perspectives.