The first wave of spot Ethereum exchange-traded funds (ETFs) in the United States debuted on July 23, with inflows running above $100 million. While the positive flows signal a strong start for the funds, ether (ETH) may not witness the parabolic uptrend bitcoin (BTC) saw after asset managers launched its ETFs earlier this year.
In CryptoQuant’s latest weekly crypto report, on-chain experts explained that new money flows into digital asset products like ETFs would have a weaker effect on ETH than BTC due to the networks’ distinct multiplier effects.
ETH Multiplier Lower Than BTC
According to analysts, Ether’s multiplier is lower than bitcoin’s and has remained low in 2024. The multiplier is the ratio of the change in market capitalization to the realized capitalization. This means that Ether’s market value responds less to fresh inflow of investment money. For every $1 of fresh money invested in bitcoin, the asset’s market cap has grown by $5. However, Ether’s market cap
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