ETFs
Want to Market Ethereum ETFs to Baby Boomers? Call Them High-Growth Tech Stocks – DL News
- Ethereum ETFs could launch at any time.
- ETF analysts at Bloomberg Intelligence predict that Ethereum ETFs will only get about 20% of the demand seen for Bitcoin ETFs.
- Bitwise CIO Matt Hougan said commercializing Ethereum as a technology could help products exceed expectations.
Spot Ethereum Exchange Traded Funds launch any day.
And there’s a chance these ETFs will far exceed expectations, according to Matt Hougan, chief investment officer of crypto index fund Bitwise, argued in a report on Monday.
The key, Hougan said, is to market Ethereum as a big tech player.
“Investors love tech stocks,” he said. “Almost all investors have exposure to high-growth tech stocks like Nvidia and Meta, and relatively few have exposure to monetary assets like gold.”
Ethereum Marketing in a Nutshell
Bitcoin was created with a strict supply limit: there will never be more than 21 million coins in existence.
For this reason, the leading cryptocurrency has often been described as “digital gold”, and presented as a potential hedge against currency depreciation.
But marketing Ethereum is not so easy.
“One of the challenges for Ethereum ETFs in penetrating the 60/40 baby boomer world is distilling its purpose/value into an easy-to-understand slogan like ‘Bitcoin is digital gold,’” said Eric Balchunas, ETF analyst at Bloomberg Intelligence. said in May.
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After all, call It’s a “decentralized, open-source, distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dApps,” which makes it difficult for outsiders to understand what Ethereum actually does.
It is for this reason – and because Ethereum futures ETFs have performed poorly – that Balchunas expects to Ethereum ETFs will only attract 15-20% of the demand that Bitcoin ETFs saw.
Bitcoin ETFs have raised about $14.6 billion since their launch in January.
Technology game
But Ethereum ETFs could “surprise to the upside” if financial advisors market the product as a tech play, Hougan said.
This means completely separating Ethereum from Bitcoin in the minds of investors. And making it clear that while Bitcoin is competing with gold, Ethereum is a center of technological development.
“It’s pretty easy for me to imagine investors selling a small portion of their tech exposure and adding Ether,” Hougan said.
“I would say it’s easier than imagining investors creating an entirely separate portfolio pocket for a new monetary asset. [like Bitcoin,]” he added.
Hougan isn’t alone in advocating for Ethereum ETFs to be marketed this way.
Ethereum ETFs will serve as proxy vehicles for anyone looking to gain exposure to anything blockchain-related, Quinn Thompson, founder of crypto hedge fund Lekker Capital, declared on X.
This would include tokenization, smart contracts, DeFi, stablecoins, and NFTs.
“Remember that old saying: ‘I believe in blockchain, but I’m not sure about Bitcoin.’ That phrase is now accessible to traditional investors,” Thompson said.
Tom Carreras is a markets correspondent for DL News. Got news on Ethereum ETFs? Contact us at tcarreras@dlnews.com