According to Bitwise's Chief Investment Officer Matt Hougan, the launch of Ethereum spot exchange-traded funds (ETFs) in the United States could attract around $15 billion in net inflows within the first 18 months of trading.

Hougan's projection is based on a thorough analysis that considers various factors, including the relative market capitalization of Ethereum compared to Bitcoin, the performance of international crypto ETPs, and the expected conversion of Grayscale's Ethereum Trust into an ETF.

The analyst expects investors to allocate to Bitcoin and Ethereum ETFs roughly in proportion to their market capitalizations, with Ethereum accounting for around 26% of the combined market. This significant share is due to Ethereum's current market capitalization of $432 billion.

While the prospects are promising, Hougan has adopted a conservative approach in his estimates. He has taken into account the slight underperformance of Ethereum ETPs compared to their absolute market capitalization weighting, as well as the likely absence of a "carry trade" for Ethereum ETFs, which is observed with Bitcoin.

The launch of Ethereum ETFs is expected to benefit from the conversion of the Grayscale Ethereum Trust into an ETF, which would immediately bring $10 billion in assets. This solid foundation could boost investor confidence and accelerate the adoption of these new financial products.

The positive outlook for Ethereum ETFs comes in an increasingly favorable regulatory context, with VanEck, another major asset management player, recently filing Form 8-A for its Ethereum ETF project, signaling increased confidence in the upcoming approval of these products by the SEC.