Ethereum
Ethereum ETF Set to Steal 20% of Bitcoin ETF’s Money Flows, Here’s Why
Last week, US Bitcoin ETFs saw a record inflow of $1.8 billion, marking their 19th consecutive day of increased demand. Many people in the crypto community believe that once Spot ETF Ethereum once it goes live, Ethereum could attract 10-20% of the money currently flowing into spot Bitcoin ETFs.
The agency is currently reviewing S-1 registration statements, which are required for final approval and include important information.
Ethereum ETFs on the rise
Jag Kooner, head of derivatives at Bitfinex, a leading cryptocurrency exchange, estimates that once Spot Ethereum ETFs go live, they are expected to capture up to 20% of the investment currently going into Bitcoin ETFs in the States. -United. Additionally, Kooner highlighted the importance of future clarification from the US SEC on whether staking will be permitted for Ethereum spot ETFs.
This change reflects investors’ desire to diversify their investment portfolios and recognize the unique advantages of Ethereum.
Kooner further compares a similar historical situation when gold and silver ETFs were introduced in the early 2000s. Although gold ETFs first appeared in 2004, the launch of gold ETFs money in 2006 brought about a significant change in investment patterns.
The surge in investor interest is likely due to the growing demand for silver across various sectors, prompting many to pursue these new opportunities.
ETH ETF must wait more
Despite receiving approval, Ethereum ETFs lag behind Bitcoin spot items as they await official registration. Major financial institutions like BlackRock and Fidelity are still waiting for SEC approval to offer Ethereum funds.
On the other hand, JPMorgan predicts that Ethereum ETFs will see lower net inflows than Bitcoin, which currently has $15.3 billion in inflows.
However, several experts predict that Ethereum ETFs could only attract net inflows ranging from $2 billion to $4 billion for the remainder of 2024. Additionally, it is expected to take some time for Ethereum to catch up with Bitcoin, which has $70 billion in ETF assets , or around 20% of the market.