The forthcoming Ether-backed exchange-traded funds (ETFs) are expected to play a supporting role compared to the more established Bitcoin ETFs available in the market.
Eric Balchunas, a senior ETF analyst at Bloomberg, anticipates that the inflows from the imminent introduction of Ether (ETH) ETFs might not reach the remarkable levels witnessed with Bitcoin (BTC) ETFs. In an exclusive conversation with Cointelegraph, Balchunas expressed that while Bitcoin is often perceived as “digital gold,” easily grasped by investors, Ethereum and its expansive decentralized finance (DeFi) ecosystem are more comparable to a tech stock, making it a bit more challenging for traditional retail investors to comprehend.
Although there are concerns that the Ether ETF launch might not match the success of the Bitcoin ETF launch, Ophelia Snyder, co-founder of 21Shares, remains optimistic about the potential inflows. Snyder advises investors to adjust their expectations, as the frenzy surrounding the Bitcoin ETF launch was unusually high.
The U.S. spot Bitcoin ETFs witnessed a significant accumulation of over $701 million worth of Bitcoin within the first week and over $540 billion in the second week of trading, as indicated by data from Dune.
In terms of the spot Ether ETF launch, Securities and Exchange Commission (SEC) Chair Gary Gensler announced on June 25 that the process is progressing smoothly in the United States. However, Gensler refrained from disclosing whether the ETFs could go live before the November election. The SEC greenlighted 19b-4 filings from eight ETF applicants on May 23, but these asset managers are currently fine-tuning their Form S-1s, which are the final filings required for SEC approval before they can commence trading. Analysts speculate that the SEC could approve the funds for trading as early as the first week of July.