Ethereum
Hedge Funds Anticipate SEC Approval for Ethereum ETFs, VanEck Predicts
- VanEck’s Matthew Sigel says hedge funds are leading SEC approvals of Ethereum ETFs and are accumulating billions of dollars of ETH in anticipation.
- VanEck continued to support ETH, saying the altcoin ETFs will eventually eclipse BTC, even as Ethereum struggles to reclaim the $3,600 level.
Some of the world’s largest hedge funds are accumulating Ethereum in anticipation of the SEC’s approval of an ETH spot ETF in the coming weeks, said VanEck’s Matthew Sigel.
The SEC approved Ethereum spot ETFs last month, but has not yet given the final authorization that will pave the way for their launch on exchanges. Chairman Gary Gensler has remained evasive on when the agency will give the green light, and ETF experts are divided. Some say it could be as early as early July, as shown in Crypto News Flash. reported.
Sigel, who heads the investment firm’s digital assets division, shared his thoughts on Ethereum on social media, saying:
Hedge funds are leading in ETH ETF approvals, ETH on exchanges is near an all-time low, and fundamentals are improving. I could eat a HODL BBQ hat by the 4th of July. And you are bearish?
Sigel cited data from K33, a research firm, which shows that investments in ETH exchange-traded products have increased over the past four weeks, recording more than 86,000 ETFs in net flows. In addition. Data from Crypto Quant shows that the number of ETH held on exchanges has declined since 2021 and is at a three-year low at around 18 million.
What’s next for Ethereum?
At press time, Ethereum was trading at $3,529, gaining 3.6% over the past day as the market cap reached $431 billion. The trading volume, however, decreased by 11.5% to $17.99 billion.
The price increase follows ConsenSys’ announcement that the SEC had dropped its lawsuit against the company for securities violations related to Ethereum. Like Crypto News Flash reportedsome crypto players interpreted this as the agency’s endorsement that ETH is not a security, and while Ether holders celebrated this, the XRP community was outraged.
The SEC’s decision will be welcomed by institutional investors in Ethereum, as they would be more limited in their investments in the token. VanEck remains one of the largest backers of the altcoin. Sigel recently predicted that over the next decade, Ethereum ETFs would overtake Bitcoin ETFs. These have been hugely successful, with the three largest ETFs holding almost $50 billion in assets.
However, according to Sigel, Ether has more to offer because it has more ways to make money than Bitcoin, such as through staking. He stated:
Overall, there is a larger market for income-producing assets than for inert assets like Bitcoin (BTC). It is not impossible that in a decade, the market for an Ethereum ETF will surpass that of Bitcoin.
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