Bitcoin
Ethereum ETFs Set to Launch: A Companion to Bitcoin ETFs?
The long-awaited launch of Ethereum spot (ETH-USD) ETFs in the United States are making waves in the crypto community. However, these new ETFs may not live up to the lofty expectations set by their Bitcoin counterparts. According to Bloomberg analyst Eric Balchunas, Ethereum ETFs could end up being a “sidekick” to the already established Bitcoin ETFs, much like Robin to Batman.
Expert Opinions on the Launch of Ether ETF
Balchunas, speaking exclusively to Cointelegraph, expressed his skepticism about upcoming Ethereum ETFs. “Bitcoin is like enough crypto hot sauce. You’re like, you know I’m good. These things move together anyway. Ethereum is harder to explain, but I’m just looking at it as a companion [to Bitcoin]”, he said. He believes that while Bitcoin’s value proposition as “digital gold” is straightforward, Ethereum’s Role in Decentralized Finance (DeFi) ecosystem makes it more complex and less attractive to traditional retail investors.
On the other hand, Ophelia Snyder, co-founder of 21Shares, has a more optimistic view. She told Cointelegraph: “The idea that [the Bitcoin ETF launch] the pattern is not realistic. [The Ethereum ETFs] “It will be a successful ETF launch. It will do significantly better than the average ETF. I think it will probably do in the top decile of ETF launches of all time.” However, Snyder also cautioned that comparing Ethereum ETFs to the record-breaking Bitcoin ETF launch could lead to unrealistic expectations.
SEC Approvals
US-based spot Bitcoin ETFs set a high bar by accumulating over $701 million worth of Bitcoin in their first week and over $540 billion in their second week, according to data from Dune. Analysts predict that while Ethereum ETFs may not match those numbers, they will still perform well on their own.
On June 25, Securities and Exchange Commission (SEC) Chairman Gary Gensler mentioned that the Ether ETF launch is “going well” in the U.S., as reported by Cointelegraph. However, He did not specify whether the ETFs would go live before the November election.saying, “It’s really about asset managers making full disclosure so that these registration statements can go into effect.” The SEC approved 19b-4 filings from eight ETF bidders on May 23, but asset managers are still finalizing their Forms S-1, the final filings required before trading can begin.
Main conclusion
As Ethereum ETFs prepare to debut, the crypto market is watching closely. While they may not reach the historic inflows of Bitcoin ETFs, experts like Snyder remain confident in their potential success. Investors should manage their expectations and recognize that while Ethereum may play a supporting role to Bitcoin, it still has a significant place in the evolving crypto landscape.