Analyst Predicts Ethereum Spot ETFs To Attract 25% Of BTC Demand – Here’s Why
26 Maio 2024 - 4:43AM
NEWSBTC
Following the sudden approval of the Ethereum Spot ETF last week,
speculations continue to roll in on the potential performance of
these funds ahead of their debut trading session. Most recently,
renowned Bloomberg ETF analyst, James Seyffart has weighed in on
the subject giving his thoughts on the possible level of
investments the Ethereum spot ETFs could pull in relation to their
Bitcoin-based equivalents. Related Reading: Analyst Says Ethereum
Spot ETFs Approval Will See “Animal Spirits” Reignite Crypto – What
This Means ETH Spot ETF Limited By Ethereum’s Utility And Other
Factors – Analyst In an interview session on X on May 24 hosted by
Bitwise Chief Investment Officer Matt Hougan, Seyffart stated that
the Ether spot ETFs would likely experience a maximum of 25% of the
demand seen by the Bitcoin spot ETFs. Seyffart based his
predictions on multiple elements starting with enormous differences
in market caps between both assets. According to data from
CoinMarket, Ethereum’s total market shares are valued at $449.25
billion which is roughly equal to 30% of BTC’s 1.35 trillion market
cap. Furthermore, the analyst also highlighted the large
disparities in the difference between both ETFs and their base
assets. According to Seyffart, there is a bigger gap between
Ethereum as an ETF and as a cryptocurrency than Bitcoin as an ETF
and as itself. The ETF analyst believes that the ETH spot
ETFs will limit investors from native ETF features such as staking,
a prominent source of passive income, and other on-chain use cases
in terms of DeFi, NFTs, DAOs, etc. Thus, certain investors might
prefer to invest directly in the altcoin. With all these
factors in consideration, Seyffart predicts these novel investment
funds will produce “big launches” but not at the level of the
Bitcoin spot ETFs. He predicts the Ethereum Spot ETFs will
record between 20-25% of investments in their Bitcoin-based peers
once trading commences. Meanwhile, fellow Bloomberg analyst Eric
Balchunas appears less optimistic with a projection of 15-20%.
Undoubtedly, the performance of the Ethereum spot ETFs will be
influential on other crypto spot ETFs that may gain approval from
the US Securities and Exchange Commission. Currently, the XRP ETF
is tipped by many enthusiasts as the next debutant in the market
but this is still subject to many factors, most especially
regulatory clarity on the institutional sales of XRP. Ethereum
Price Overview In other news, Ethereum is trading at $3,766 with a
0.51% gain in the last day. This slight positive performance
underscores Ethereum’s form all week with a combined 20.47% gain
recorded in the last seven days. Meanwhile, ETH’s daily trading
volume is down by 51.27% and is valued at $10.03 billion. Related
Reading: Post-Ethereum ETF Analysis: ETH Price Seeks Bottom As
Bulls Eye $5,000 Target Featured image from BitMEX, chart from
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