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Bloomberg Analyst Predicts Ethereum Spot ETF Will Attract 25% of BTC Demand

by xyonent
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Following the sudden approval of Ethereum Spot ETFs last week, speculation continues to circulate regarding the potential performance of these funds ahead of their first trading session. Most recently, well-known Bloomberg ETF analyst James Seyffart spoke out on the subject, offering his thoughts on how well Ethereum Spot ETFs could pull in investments compared to their Bitcoin-based counterparts.

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ETH Spot ETF will be limited by Ethereum’s utility, other factors – Analyst

in X’s interview session Speaking at an event hosted by Bitwise Chief Investment Officer Matt Hogan on May 24, Seifert said that demand for an Ethereum spot ETF could be up to 25% of the demand for a Bitcoin spot ETF.

Seifert based his prediction on several factors, including the large difference in market capitalization between the two assets. Data from CoinMarketEthereum’s total market share is valued at $449.25 billion, roughly 30% of BTC’s market cap of $1.35 trillion.

Additionally, the analyst noted the wide discrepancy between the two ETFs and their underlying assets: According to Seifert, there is a larger gulf between Ethereum as an ETF and Bitcoin as a cryptocurrency than there is between Bitcoin as an ETF and Bitcoin itself.

ETF analysts believe that an ETH Spot ETF will limit investor access to ETF-specific features such as staking, a major passive income stream, and on-chain use cases such as DeFi, NFTs, DAOs, etc., which is why some investors may prefer to invest directly in altcoins.

Taking all these factors into account, Seifert predicted that these new investment funds will generate a “big launch,” but not at the level of a Bitcoin Spot ETF. He predicts that an Ethereum spot ETF will record investment of 20-25% of that of Bitcoin-based ETFs once trading begins, while Bloomberg analyst Eric Balchunas is less optimistic, predicting 15-20%.

Undoubtedly, the performance of the Ethereum Spot ETF will have an impact on other cryptocurrency spot ETFs that may be approved by the U.S. Securities and Exchange Commission. Currently, the XRP ETF is recommended by many enthusiasts as the next debut in the market, but this still depends on many factors, especially regulatory clarity regarding institutional sales of XRP.

Ethereum Price Overview

In other news, Ethereum is trading at $3,766, up 0.51% over the past day. This slightly positive performance highlights Ethereum’s strong week, with a total gain of 20.47% over the past seven days. Meanwhile, ETH’s daily trading volume is down 51.27% to $10.03 billion in value.

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ETH is trading at $3,763 on the daily chart | Source: ETHUSDT chart on Tradingview.com

Featured image from BitMEX, chart from Tradingview

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