ETFs
Ethereum ETFs Will Be a Web3 Growth “Call Option” — Crypto Analyst — TradingView News
Ether ETHUSD may have an easily explained selling point after all – an option for investors to bet on the future growth of Web3 – after recent doubts about the precise definition of Ether to sell the idea of exchange-traded funds ( ETF) to spot Ether, according to a crypto analyst.
“ETH is a technology play on the growth of Web3. A “call option” or “high growth index for Web3 adoption”. While Bitcoin is “digital gold,” DeFi Report crypto analyst Michael Nadeau said in a May 28 report.
The Web3 industry is expected to generate annual revenue of $33.5 billion by 2030, according to data from Grand View Research.
Ethereum potentially has “a much larger addressable market” if you break down the two largest cryptocurrencies with simple investment terminology, Nadeau argued.
Nadeau believes Ether could surpass its November 2021 all-time high of $4,870 once spot Ether ETFs launch, as they will increase demand pressure, as seen with Bitcoin following the launch of Bitcoin ETFs in counting in January.
However, Ethereum validators are different because they do not have high operating expenses like Bitcoin miners. This means that Ethereum validators are not forced to sell to cover costs, which simply puts more pressure on demand.
“ETH does not have the same level of “structural selling pressure” as BTC since ETH validators do not incur operating expenses like Bitcoin miners do.”
He also noted that Ether is much more “reflexive” to positive feedback loops than Bitcoin. 
“This reflexivity could be expressed through price action leading to on-chain activity, which would lead to more burning of ETH, which could drive more narratives, more price action, more on-chain activity and a greater amount of ETH burned,” he claimed.
Nadeau claimed that Ethereum has “superior network effects” compared to Bitcoin and offers investors the ability to stake Ether and earn a return, something Bitcoin lacks.
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