Bloomberg Analyst: ETH ETF Could Reach Only 15% of BTC ETF Size
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Bloomberg Analyst: ETH ETF Could Reach Only 15% of BTC ETF Size
ETH ETFs may attract only a fraction of the investment seen in BTC ETFs.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
Bloomberg Senior ETF Analyst Eric Balchunas has tempered enthusiasm around spot ETH ETFs, suggesting they may attract only a fraction of the investments seen in BTC ETFs.
On May 20, reports indicated a 75% likelihood that the U.S. Securities and Exchange Commission (SEC) would approve ETH ETFs, a stark contrast to previous bearish sentiment surrounding the financial product.
According to CryptoSlate data, this news triggered an over 20% surge in ETH’s price, pushing it above $3,700.
Additionally, blockchain analytics platform IntoTheBlock noted that this price rally put 90% of ETH holders in a profitable position.
This bullish momentum led some market analysts to predict substantial inflows into ETH ETFs, similar to the BTC ETFs launched in January.
Data from Farside Investors shows that since the launch of spot BTC ETFs in the U.S., these funds have accumulated approximately $13 billion in assets under management.
However, Balchunas remains skeptical, estimating that ETH ETFs might capture only "10%-15% of BTC ETF assets."
Balchunas said: "I think comparing the launch of spot ETH ETFs following BTC ETFs to a Sister Hazel concert after Nirvana is probably why some people are attacking me."
"That's fine. Although it might sound harsh, I still believe ETH ETF assets will amount to only 10%-15% of BTC ETF assets."
Meanwhile, Fidelity has submitted an updated S-1 registration statement for its proposed ETH ETF to the SEC ahead of a key deadline.
The revised filing has removed all references to staking or staking rewards. Previously, the prospectus indicated the fund would stake some of its assets with providers to earn rewards.
Analysts believe this change stems from the SEC's scrutiny of staking programs for crypto assets.
Currently, the SEC has sued major exchanges like Kraken and Coinbase, alleging their staking products violate federal securities laws.
Balchunas added: "Has the public received a definitive answer on whether the SEC will allow staking? Clearly not. This is just the first revised filing released after SEC File No. 180."
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