The anticipated launch of Ether-based exchange-traded funds (ETFs) may play a secondary role compared to the more established Bitcoin ETFs.
Eric Balchunas, a senior ETF analyst at Bloomberg, anticipates that the inflows from the upcoming launch of Ether ETFs might not match the record-breaking inflows of Bitcoin ETFs. In an exclusive interview with Cointelegraph, Balchunas explained that while Bitcoin is widely understood as “digital gold,” Ethereum and its decentralized finance (DeFi) ecosystem resemble more of a tech stock, making it less accessible to traditional retail investors.
Balchunas’ perspective reflects industry sentiment that Ether ETFs could underwhelm due to comparisons with the immensely successful launch of Bitcoin ETFs, which attracted unprecedented investment. However, Ophelia Snyder, co-founder of 21Shares, expressed optimism about the Ether ETF’s potential to attract substantial inflows. She cautioned, though, that expectations should be adjusted given the exceptional performance of the Bitcoin ETF launch.
According to data from Dune, U.S. spot Bitcoin ETFs accumulated over $701 million worth of Bitcoin within the first week and surpassed $540 billion within the second week of trading.
SEC Chair Gary Gensler announced on June 25 that the Ether ETF launch is progressing smoothly in the United States, though he did not disclose whether the ETFs could be operational before the November election. Despite the SEC’s approval of 19b-4 filings from eight ETF bidders on May 23, final adjustments to their Form S-1s are still ongoing before they can commence trading. Analysts speculate that SEC approval for trading could potentially be granted as early as the first week of July.
Overall, while the Ether ETFs are poised for launch, expectations vary regarding their impact compared to the landmark debut of Bitcoin ETFs in shaping the cryptocurrency markets.