Whereas the SEC additionally permitted spot Ethereum ETFs after Bitcoin, ETH ETFs nonetheless haven’t began buying and selling. At this level, analysts suppose spot Ethereum ETFs is not going to obtain as a lot funding as Bitcoin ETFs.
Talking to The Block, Jag Kooner, head of derivatives at Bitfinex, had the identical opinion about Ethereum ETFs, saying that if ETFs began buying and selling now, they may seize one-fifth of spot Bitcoin ETF funding flows.
Kooner said that the SEC’s choice on staking is essential for ETH ETFs and mentioned:
“ Estimates out there recommend that spot Ethereum ETFs may seize 10-20% of flows into spot bitcoin ETFs.
However with ETH ETFs, I imagine quite a bit will depend on future bulletins by the SEC relating to permitting or denying staking for spot Ethereum ETFs. Including staking to ETFs may change issues for Ethereum.”
Stating that institutional fund managers are on the lookout for numerous merchandise to diversify their portfolios, the Bitfinex supervisor cited spot Gold ETFs on this regard.
Declaring that the primary spot Gold ETF revolutionized gold buying and selling, Kooner mentioned that the identical might be the case for spot ETH ETFs, contemplating the use circumstances of Ethereum.
Ethereum continues to commerce at $3,670 on the time of writing.
*This isn’t funding recommendation.