The highly anticipated launch of spot Ethereum (ETH-USD) ETFs in the United States has the crypto community talking. However, these new ETFs might not live up to the high 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 Ether ETF Launch
Balchunas, speaking exclusively to Cointelegraph, expressed his skepticism about the incoming 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 seeing it being a sidekick [to Bitcoin],” he said. He believes that while Bitcoin’s value proposition as “digital gold” is straightforward, Ethereum’s role in the decentralized finance (DeFi) ecosystem makes it more complex and less appealing 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] is the standard is not realistic. [The Ethereum ETFs] 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 ever.” However, Snyder also cautioned that comparing Ethereum ETFs to the record-breaking Bitcoin ETF launch might lead to unrealistic expectations.
SEC Approvals
The US-based spot Bitcoin ETFs set a high bar by amassing over $701 million worth of Bitcoin within the first week and over $540 billion in the second week, according to Dune data. Analysts predict that while Ethereum ETFs may not match these numbers, they will still perform well in their own right.
On June 25, Securities and Exchange Commission (SEC) Chair Gary Gensler mentioned that the Ether ETF launch is “going smoothly” in the US, as reported by Cointelegraph. However, he did not specify if the ETFs would go live before the November election, saying, “It’s really about the asset managers making the full disclosure so that those registration statements can go effective.” The SEC approved 19b-4 filings from eight ETF bidders on May 23, but the asset managers are still finalizing their Form S-1s, the final filings needed before trading can commence.
Key Takeaway
As the Ethereum ETFs prepare to debut, the crypto market is watching closely. While they might 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.
