Ethereum ETFs Set for Launch: Will They Steal the Spotlight from Bitcoin?

Last week, nearly eight companies updated their S-1 amendments with the U.S. Securities and Exchange Commission (SEC), gearing up for the launch of a spot Ethereum ETF by early July.

As anticipation builds for the Ethereum ETF, Markus Thielen, CEO of 10X Research, offers a measured outlook. He suggests that the Ethereum ETF might capture only 15% of the investment seen by U.S. spot Bitcoin ETFs.

VanEck’s Strategic Moves

Markus Thielen revealed that VanEck, a major financial firm, is making significant preparations. VanEck’s CEO met with the SEC to discuss their ETH ETF. They plan to start with no fees until the fund reaches $1.5 billion in assets or by next year, after which a low fee of 0.2% will be implemented.

Recently, VanEck filed Form 8-A, a crucial step taken exactly seven days before the launch of Bitcoin ETFs, indicating that they are poised for an ETH ETF launch by July 2nd. VanEck’s Bitcoin ETF currently manages $600 million.

Market Predictions

Thielen predicts that the ETH ETF could attract 15% to 20% of the investments that Bitcoin ETFs receive, approximately $14 billion. This suggests the potential for the Ethereum ETF to gather around $2.8 billion in assets, mirroring the increase in ETH futures interest since news broke on May 20th.

Contrarily, Matt Hougan, Chief Investment Officer of Bitwise, suggests that the Ethereum ETF could draw in $15 billion of net inflows in the first 18 months. The approval of Ethereum ETFs marks a significant milestone for the cryptocurrency market.

Broadening Investment Horizons

Ethereum ETFs would simplify the investment process for traditional investors, allowing them to speculate on Ethereum’s price without directly owning the digital currency. This development is expected to attract more institutional and retail investors to Ethereum, potentially boosting its market activity and popularity.

Informative: Stay tuned! With the launch of Ethereum ETFs just around the corner, keep an eye out for further updates on how this will impact the cryptocurrency market.