The upcoming introduction of United States-based Ether exchange-traded funds (ETFs) may play a secondary role compared to their more established Bitcoin counterparts.
Eric Balchunas, a senior ETF analyst at Bloomberg, anticipates that the inflows from the forthcoming launch of Ether (ETH) ETFs might not match the record-breaking levels seen with Bitcoin (BTC) ETFs.
In an exclusive conversation with Cointelegraph, Balchunas pointed out that while Bitcoin is widely perceived as “digital gold,” Ethereum and its decentralized finance (DeFi) ecosystem resemble more of a tech stock, making it less straightforward for traditional retail investors to grasp.
Experts suggest that expectations for the Ether ETFs could be overly optimistic, drawing comparisons to the tremendously successful launch of Bitcoin ETFs in history.
Conversely, Ophelia Snyder, co-founder of 21Shares, remains optimistic about the Ether ETF launch, expecting significant inflows. However, Snyder advised investors to adjust their expectations, noting that the initial inflows surrounding Bitcoin ETFs’ launch were exceptionally high.
The debut of US-based spot Bitcoin ETFs saw substantial accumulation, with over $701 million worth of Bitcoin amassed in the first week and over $540 billion in the second week of trading, according to Dune data.
SEC Chair Gary Gensler indicated on June 25 that the Ether ETF launch process in the US is progressing smoothly. However, he did not disclose whether the ETFs could go live before the November election.
Despite the SEC approving 19b-4 filings from eight ETF applicants on May 23, asset managers are still finalizing their Form S-1 filings, which the SEC requires for approval before trading commences.
Some analysts predict that the SEC could greenlight the funds for trading as early as the first week of July.