Spot Ethereum ETFs may soon be catching up to Bitcoin, according to analysts who believe the SEC’s decision could change the game for ETH ETFs. Jag Kooner, head of derivatives at Bitfinex, predicts that if spot Ethereum ETFs were to begin trading, they could attract a significant portion of the investment flows currently going into Bitcoin ETFs.
Despite the SEC’s approval of spot Ethereum ETFs following Bitcoin, these ETFs have yet to start trading. Analysts are skeptical about whether spot Ethereum ETFs will be as successful as Bitcoin ETFs in attracting investments. Kooner shared his thoughts with The Block, highlighting the potential impact of the SEC’s decision on staking for ETH ETFs.
Kooner emphasized the importance of the SEC’s stance on staking for spot Ethereum ETFs, suggesting that it could significantly influence the success of these products. He stated that estimates suggest spot Ethereum ETFs could capture between 10-20% of the flows currently going into spot Bitcoin ETFs.
Institutional fund managers are reportedly interested in diversifying their portfolios with different products, similar to the introduction of spot Gold ETFs that revolutionized gold trading. Kooner believes that spot ETH ETFs could have a similar impact, especially considering the various use cases of Ethereum.
At the time of writing, Ethereum is trading at $3,670. It is important to note that this information should not be considered investment advice. If you are interested in investing in over 300 cryptocurrencies, you can register with Binance exchange using the provided link for a 20% commission discount. Stay updated with exclusive news, analytics, and on-chain data by following our Telegram and Twitter accounts.