A Bloomberg expert says Ethereum ETF approvals are overvalued next to Bitcoin.

Crypto fanatics could be in for a huge surprise with the launch of a market-shaking Ethereum spot ETF, according to Bloomberg ETAT analyst Eric Balchunas.

Despite the resounding success of several Bitcoin spot EFAs recently launched in the United States, Balchunas said a follow-up launch for Ethereum would be “small potatoes” compared to the original.

Are Ethereum ETFs worth it?

Balchunas wrote to X on Saturday:

“No offense to the ETH folks, but this is small potatoes with spot bitcoin ETFs. It's like the opening act after the headline. Using GenX bands, it's like Sister Hazel trying to follow Nirvana.”

Balchunas explained that his forecast is based on both empirical and public data suggesting that Ethereum ETFs will not be “anywhere close” to their Bitcoin-based counterparts, pulling in more than $7 billion in net flows since their launch on January 11.

Before its launch, asset managers fought a long legal battle with the Securities and Exchange Commission (SEC) to access Bitcoin spot ETFs due to major disagreements over whether the Bitcoin market was vulnerable to foreign manipulation.

After Grayscale defeated the agency in court last year, the firm quickly filed to launch an Ethereum spot ETF, followed by BlackRock and Fidelity — the three biggest providers of Bitcoin spot ETFs today.

Ethereum VS Bitcoin ETFs: What we know

Although many are sure that the SEC will be forced to re-approve the product, it is questionable whether the market will buy it or not. For example, Ethereum futures ETFs launched in October last year, but generated smaller flows and volume compared to Bitcoin's first futures in October 2021.

Looking at Canadian spot ETFs, the Aim Ether ETF currently boasts CAD 458 million in AUM, compared to USD 2.5 billion in AUM with the company's Bitcoin ETF. For context, Ether's global market cap is roughly one-third that of Bitcoin, meaning it may be less popular than BTC in the ETF pack.

In a Bitwise survey of registered investment advisors conducted last year, 71% of advisors said they preferred Bitcoin over Ethereum.

In comments shared with CryptoPotato in November, the asset manager explained that ETFs make more sense for Bitcoin than for Ethereum, due to the general ignorance of institutional investors about the difference between the two assets.