Ether ETFs Will Be Just a ‘Side Marker’ for Bitcoin ETFs – Bloomberg Analyst
The US-based Ether Exchange Traded Funds (ETFs) may just be a “side token” to the more established space Bitcoin ETFs.
According to Eric Balchunas, senior ETF analyst at Bloomberg, the flow generated by the upcoming launch of Spot Ether (ETH) ETFs may be disappointing compared to the flow of Bitcoin (BTC) ETFs recorded.
Speaking exclusively to Cointelegraph, Balchunas said:
“Bitcoin is like enough crypto hot sauce. You know I'm good. Anyway, these things move together. Ethereum is hard to explain, but what I'm seeing is a fan. [to Bitcoin]He said.
While Bitcoin's value proposition is relatively easy to understand as “digital gold,” Ethereum and the broader decentralized finance (DeFi) ecosystem are similar to tech stocks, making it difficult for traditional retail investors to understand, Balchunas explained.
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Ether ETF Launch Expectations: Experts Weigh In
Some experts suggest that the position may disappoint Ether ETFs as the industry is comparing them to some of the most successful Bitcoin ETF startups in history.
However, 21Shares co-founder Ophelia Snyder expects the Ether ETF startup to perform well in terms of revenue. She told Cointelegraph:
“The idea [the Bitcoin ETF launch] The requirement is not objective. [The Ether ETFs] It will be a successful ETF launch. It performs better than the average ETF. I think it will probably peak in ETF startups.
However, Snyder suggests that investors should adjust their expectations and consider that the returns surrounding Bitcoin ETF launches are much higher than average.
The US-based space's Bitcoin ETFs collected more than $701 million worth of bitcoin in the first week and more than $540 billion in trading in the second week, according to Dunn's data.
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When can we expect the spot Ether ETF to launch?
On June 25, Securities and Exchange Commission (SEC) Chairman Gary Gensler said the launch of the Ether ETF in the US is “going smoothly.”
However, Gensler remained tight-lipped on whether EFAs would go live before the November election.
“Of course asset managers need full disclosure to make these registration statements effective.”
The SEC approved 19b-4 filings from eight ETF bidders on May 23, but asset managers are still preparing their Form S-1s — the final filings the SEC must approve before they go live for trading.
Some analysts have predicted that the SEC could approve the currency for trading as early as the first week of July.
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