VanEck Says Ethereum ETF Market Has Greater Potential Than Bitcoin ETFs Due to ETH Staking Rewards

The ethereum ETF (exchange-traded fund) market has more potential than spot bitcoin ETF investment vehicles because the eth network also offers staking rewards.

This is according to Pranav Kanade, portfolio manager of the fund management giant. Van Eck.

“The world of investors looking for cash-producing assets is huge and eth obviously generates fees that go to token holders,” Kanade told CoinDesk. “Even if you don't have an ETF that can offer staking as part of it, it's still a cash-producing asset, so I think eth might make more sense as an asset for more people than bitcoin.”

ethereum ETF Viability Questioned

Kanade's prediction comes amid speculation that ethereum ETFs will not allow staking rewards to be distributed to ETF investors.

The portfolio manager acknowledged this potential shortcoming, but said that ethereum ETFs “remain a cash-producing asset” regardless of whether they pay staking rewards directly to investors.

This could be “huge” for “investors looking for cash-producing assets,” he said.

<img decoding="async" alt="VanEck's amended filing for bitcoin spot ETF signals evolving crypto market: r/BitcoinIndia” src=”https://external-preview.redd.it/vanecks-amended-application-for-spot-bitcoin-etf-signals-v0-96XJjNINr6HqxjsGAdtsj874nPOuV5RotaGhV-iqBSw.jpg?auto=webp&s=1adc3571d11bdb34ad0b1964b35dd7d03eea6ebf”/><img decoding="async" src="https://external-preview.redd.it/vanecks-amended-application-for-spot-bitcoin-etf-signals-v0-96XJjNINr6HqxjsGAdtsj874nPOuV5RotaGhV-iqBSw.jpg?auto=webp&s=1adc3571d11bdb34ad0b1964b35dd7d03eea6ebf” alt=”VanEck's amended filing for bitcoin spot ETF signals evolving crypto market: r/BitcoinIndia”/>

Spot bitcoin ETF Activity Surge Again

The ten bitcoin spot ETFs that launched in the US have already seen inflows of $10 billion in just two months. Trading volumes of these investment products have also skyrocketed.

The collective volumes of US spot bitcoin ETFs have already surpassed figures recorded in January and February this month, according to Bloomberg ETF analyst Eric Balchunas.

Here is the monthly volume of the ten btc ETFs. March is barely halfway over, but it has already surpassed the figures for February and January with $65 billion. pic.twitter.com/UpZ6pFgQgt

– Eric Balchunas (@EricBalchunas) March 14, 2024

Meanwhile, VanEck's Spot bitcoin ETF, HODL, saw its trading activity rise to $258 million after announcing that reduce all sponsor fees to zero for the first $1.5 billion invested in its ETF.

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