The upcoming U.S.-based spot Ethereum exchange-traded fund (ETF) may just be a “sidekick” to the more established spot Bitcoin ETF.
Inflows generated by the upcoming launch of a spot Ether (ETH) ETF may be disappointing compared to the record-breaking inflows into a spot Bitcoin (BTC) ETF, according to Bloomberg senior ETF analyst Eric Balchunas.
In an exclusive interview with Cointelegraph, Balchunas said:
“Bitcoin is like the hot sauce of enough cryptocurrencies. I’m like, okay, you know? They go together anyway. Ethereum is hard to explain, but I think of it as a companion.” [to Bitcoin].”
While Bitcoin’s value proposition as “digital gold” is relatively easy to understand, Ethereum and its broader decentralized finance (DeFi) ecosystem are more like tech stocks and harder for traditional retail investors to understand, Balchunas explained.
Related: Justin Sun Offers German Government to Buy $2.3 Billion Worth of Bitcoin to Minimize Market Impact
Ethereum ETF Launch Anticipated: Experts Speak Out
Some experts say spot ether The ETF may disappoint as the industry is comparing it to the launch of the Spot Bitcoin ETF, which was one of the most successful ETF launches in history.
However, Ophelia Snyder, co-founder of 21Shares, expects the Ethereum ETF launch to perform well in terms of inflows. She told Cointelegraph:
” [the Bitcoin ETF launch] The standards are not realistic. [The Ether ETFs] “It’s going to be a successful ETF launch. It’s going to perform significantly better than the average ETF. I think it’s probably going to be in the top 10% of ETFs ever launched.”
However, Snyder said investors should adjust their expectations and take into account that the inflows surrounding the launch of the Bitcoin ETF have been much higher than average.
The U.S.-based Spot Bitcoin ETF accumulated $701 million worth of Bitcoin in its first week of trading and $540 billion in its second week, according to Dune Data. show.
Related: Insider trading allegations hit Khamzat Chimaev’s Smash Token
When is the Spot Ether ETF expected to launch?
On June 25, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said that the launch of an Ethereum ETF in the United States is “progressing well.”
But Gensler remained tight-lipped about whether the ETF could begin operations before the November election.
“What is important is that the asset manager provides full disclosure and the registration statement becomes effective.”
The SEC approved 19b-4 filings from the eight ETF bidders on May 23, but the asset manager is still finalizing its S-1 form, the final filing that the SEC needs to approve before trading can begin.
Some analysts predict the SEC could approve the fund’s trading as early as the first week of July.
magazine: Will the financial crisis bring an end to the crypto bull market?
