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Bloomberg Senior ETF Analyst Eric Balchunas tempered enthusiasm for spot ethereum exchange-traded funds (ETFs), suggesting they may attract only a fraction of the investments seen in bitcoin ETFs.
On May 20, reports indicated a 75% chance that the US Securities and Exchange Commission (SEC) would approve an eth ETF, starkly contrasting the previous pessimism surrounding the financial instruments.
The news caused a more than 20% increase in the price of eth, pushing it above $3,700, according to CryptoSlate data. Additionally, the IntoTheBlock blockchain analytics platform x.com/intotheblock/status/1792825374315094429″>he pointed that this price increase prompted 90% of eth holders to make profits.
This bullish trend led some market analysts to predict significant inflows for eth ETFs, similar to the success of btc ETFs launched in January. Since the debut of spot bitcoin ETFs in the US, these funds have accumulated approximately $13 billion in assets under management. according according to data from Farside Investors.
However, Balchunas remains skeptical and estimates that eth ETFs could only capture “between 10% and 15% of btc ETF assets.” He x.com/EricBalchunas/status/1792885274311037167″>commented:
“I think comparing Ether ETFs after bitcoin ETFs to a concert where Sister Hazel appears at after Nirvana is probably why some people approach me about this and that's okay. Maybe that was harsh, but I still see Ether ETFs getting 10% to 15% of the assets of btc ETFs.”
Fidelity eliminates bets
At the same time, Fidelity sent an updated S-1 registration statement to the SEC for its proposed ethereum ETF ahead of key deadlines.
The revised document has removed all traces of gambling or rewards. Previously, the prospectus indicated that the fund would stake some assets with a provider to earn rewards.
Analysts believe this change is due to the SEC's scrutiny of crypto betting. The SEC has sued major exchanges such as Kraken and Coinbase, alleging that their betting products violate federal securities laws.
Balchun x.com/EricBalchunas/status/1792875387342532644″>aggregate:
“It looks like you got a final answer on whether the SEC will allow gambling: No. As this is the first amendment to any document that will be released after SEC 180 and your comments to issuers yesterday.”
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