The forthcoming Ether-based exchange-traded funds (ETFs) are poised to complement the already popular spot Bitcoin ETFs, rather than overshadow them.
According to Bloomberg’s senior ETF analyst Eric Balchunas, the anticipated spot Ether (ETH) ETFs might see a lukewarm reception in terms of inflows when compared to the groundbreaking success of spot Bitcoin (BTC) ETFs. In an exclusive conversation with Cointelegraph, Balchunas elaborated that Bitcoin’s narrative as “digital gold” is straightforward for investors to grasp. In contrast, Ethereum’s expansive decentralized finance (DeFi) ecosystem resembles a tech stock, presenting a more complex investment landscape for the average retail investor.
In related news, Justin Sun has proposed to acquire the German government’s $2.3 billion Bitcoin holdings to mitigate market disruption.
**Expert Perspectives on Ether ETF Launch:**
A segment of industry specialists anticipates that the Ether ETF might not live up to expectations, especially when measured against the Bitcoin ETF’s historic launch. Nonetheless, Ophelia Snyder, co-founder of 21Shares, has a positive outlook on the Ether ETF’s potential to attract significant inflows. However, Snyder advises investors to temper their expectations, noting that the Bitcoin ETF’s initial inflows were exceptionally high.
In its debut week, U.S. spot Bitcoin ETFs gathered over $701 million in Bitcoin (BTC), with the figure soaring to over $540 billion in the second week, as indicated by Dune Analytics.
**Weekly Net Flows of Bitcoin ETFs.** Source: Dune Analytics
**Anticipating the Ether ETF Debut:**
Gary Gensler, Chair of the Securities and Exchange Commission (SEC), remarked on June 25 that the Ether ETF’s introduction in the U.S. is progressing without hitches. However, Gensler did not disclose whether the ETFs would be operational before the November elections.
The SEC has given the nod to 19b-4 filings from eight ETF contenders on May 23. Despite this, asset managers are still fine-tuning their Form S-1s, which are essential for the SEC’s final approval before the ETFs can commence trading. Market analysts speculate that the SEC might greenlight the ETFs as early as the first week of July.
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