The anticipated arrival of Ether-based exchange-traded funds (ETFs) in the United States might play a supporting role to the already popular Bitcoin-based spot ETFs.
According to Bloomberg’s senior ETF analyst Eric Balchunas, the forthcoming Ether (ETH) ETFs might not see the same level of initial capital inflow as their Bitcoin (BTC) counterparts, which set new records. In an exclusive interview with Cointelegraph, Balchunas remarked that while Bitcoin’s narrative as “digital gold” is straightforward for investors, Ethereum’s broader decentralized finance (DeFi) ecosystem resembles a tech stock, presenting a steeper learning curve for the average investor.
In related news, Justin Sun has proposed purchasing the German government’s $2.3 billion Bitcoin holdings to mitigate market impact.
Industry insiders have mixed expectations regarding the Ether ETFs’ launch. Some believe it may not live up to the hype generated by the Bitcoin ETFs’ debut—one of the most triumphant in ETF history. Yet, Ophelia Snyder, co-founder of 21Shares, is optimistic about the Ether ETFs’ potential to attract significant inflows, although she cautions investors to temper their expectations in comparison to the extraordinary Bitcoin ETFs’ launch.
Data from Dune Analytics reveals that U.S.-based Bitcoin ETFs gathered over $701 million in Bitcoin in their first week and surpassed $540 billion in the second week.
Weekly net flows of Bitcoin ETFs. Source: Dune Analytics
Further developments include insider trading accusations involving Khamzat Chimaev’s Smash token.
As for the Ether ETFs’ launch date, SEC Chair Gary Gensler confirmed on June 25 that preparations are progressing well in the U.S. However, he did not disclose whether the ETFs would be operational before the November elections.
The SEC has given the green light to 19b-4 filings from eight ETF applicants as of May 23. Nonetheless, asset managers continue to refine their Form S-1s, the final documents required for SEC approval before trading can commence. Some analysts anticipate that the SEC might greenlight the ETFs for trading as early as the first week of July.
In related articles, discussions are ongoing about whether a financial crisis could halt the current bullish trend in the cryptocurrency market.