Although ethereum has outperformed bitcoin in returns since the beginning of the year, investors still appear to remain bearish on its ETF.
While ethereum spot exchange-traded fund (ETF) trading has not yet begun, Bloomberg crypto-etf-hype-shifts-to-ether-eth-solana-sol-from-bitcoin–btc” target=”_blank” rel=””>reports that investors are already showing “bearish” sentiment towards the second-largest cryptocurrency, citing Fundstrat’s head of digital asset strategy Sean Farrell.
In a note, Farrell highlighted that despite the negative sentiment, hedge funds could still provide a significant boost to these ETFs by capitalizing on fundamentals-based trading opportunities – the discrepancies between the spot and futures markets. The Fundstrat Global and Galaxy Digital project targeting ethereum ETFs could attract $5 billion in net inflows in the first five months, although Galaxy Digital warns that a lack of participation in the ETFs could impact demand.
Despite the bearish outlook, the approval of ethereum spot ETFs could mark a pivotal milestone for the broader crypto industry, as VanEck has recently signaled its intention to launch another spot ETF, this time for Solana.
<img decoding="async" width="664" height="218" src="https://crypto.news/app/uploads/2024/06/isdjfisdj.png” alt=”Fundstrat executive says sentiment around ethereum ETF is “demasiado bajista” – 1″/>
Analysts at GSR Markets, one of the oldest crypto market makers, project that the introduction of spot ethereum ETFs could pave the way for more top 100 cryptocurrencies to enter traditional markets. Based on decentralization and demand, GSR Markets anticipates that once Solana receives approval for its ETF, investment firms will likely apply for spot ETFs for NEAR Protocol (NEAR), Avalanche (AVAX), Aptos (APT), and others.
However, the timeline for the U.S. Securities and Exchange Commission (SEC) to approve these filings remains to be seen. Reuters, citing its own sources, technology/us-regulators-could-approve-spot-ether-etfs-launch-by-july-4-sources-say-2024-06-26/” target=”_blank” rel=””>reports that the SEC could approve ethereum spot ETFs as soon as July 4. Meanwhile, Bloomberg Senior ETF Analyst Eric Balchunas x.com/EricBalchunas/status/1806319656694628659″ target=”_blank” rel=””>indicated Solana ETFs are unlikely to be approved before 2025.
Since the beginning of the year, ethereum's price has risen by roughly 51%, outperforming bitcoin by 6% and Solana by 13%, according to data from MarketWatch.
