Can Ether ETFs Exceed Expectations Despite Bitcoin Dominance?

Eric Balchunas, senior ETF analyst at Bloomberg, predicts that upcoming Ether-based exchange-traded funds (ETFs) will not enjoy the massive success of Bitcoin spot ETFs in the United States. describe Bitcoin is a “hot sauce crypto” that is well understood by investors, while Ethereum, with its complex decentralized finance (DeFi) ecosystem, is more difficult to explain.

Balchunas sees Ether ETFs as a “sidekick” to Bitcoin ETFs, which have already set records with their initial inflows. The explosive revelation has sparked a debate about the overhyped status of ETH ETFs, with many comparing it to the poor performance seen in Hong Kong.

Bitcoin has set the bar high, will Ethereum live up to its success? Let’s hear from the real guy!

Who will win the ETF race; Bitcoin vs ETH?

Despite concerns that Ether ETFs won’t be as successful as Bitcoin ETFs, some experts are optimistic. Ophelia Snyder, co-founder of 21Shares, believes that while Ether ETFs won’t reach the extraordinary levels of Bitcoin ETFs, they will still be successful. She expects Ether ETFs to perform well.

She does acknowledge, however, that Bitcoin ETFs set the bar exceptionally high and that Ether ETFs should be judged against average ETF launches, not Bitcoin’s record performance.

On the other side

While Bitcoin ETFs are expected to see a surge in inflows, reaching $50 billion by 2025, Ethereum ETFs could attract around $15 billion in their first 18 months, with $500 million in the first week, according to Bitwise. Matt HouganSome analysts are skeptical because Ethereum doesn’t have the “digital gold” status that Bitcoin has. However, Hougan believes investors have a strong affinity for the technology and are actively following companies like Nvidia and Meta.

Therefore, to succeed, Ethereum will need to position itself as a technology platform rather than just a cryptocurrency, and more innovative Ethereum-based products may be needed to boost its appeal.

Launch schedule and regulatory updates

Meanwhile, the SEC is close to the approval process for Ether ETFs, with Chairman Gary Gensler noting that everything is going “without a hitch.” However, there is no clear indication that the ETFs will launch before the November election.

Analysts speculate that the SEC could approve Ether ETFs as early as the first week of July, as asset managers finalize their S1 regulatory filings. The launch will mark a significant moment for the cryptocurrency market, with anticipation of how it will impact investor sentiment and market dynamics.

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