Ethereum

Bitcoin

Spot

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Spot Ethereum ETFs could potentially attract 10-20% of the current investment flows directed towards spot Bitcoin ETFs.</li>
 <li>The introduction of Ethereum ETFs might prompt fund managers to diversify their portfolios between Bitcoin and Ethereum.</li>
</ul>
<p>An analyst predicts that spot <a href="https://crypto.ro/en/cryptocurrencies/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a> ETFs could attract as much as 20% of the investment flows that are currently directed towards spot <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> ETFs.</p>
<h2 id="dependent-on-regulatory-clarity">Dependent on Regulatory Clarity</h2>
<p>However, the analyst, Jag Kooner, believes that a lot hinges on future clarity regarding whether staking will be permitted or prohibited by the U.S. Securities and Exchange Commission for spot Ethereum ETFs.</p>
<p>Kooner provided a historical example of how fund managers diversify funds between various related ETFs to balance their exposure.</p>
<h2 id="historical-precedents">Historical Precedents</h2>
<p>He drew parallels with the launch of gold ETFs, which, upon introduction, attracted substantial investment, thereby impacting the inflows into existing financial products related to gold.</p>
<p>Likewise, the introduction of Ethereum ETFs could lead fund managers to reallocate resources to balance their exposure to both Bitcoin and Ethereum.</p>
<p>Kooner also cited the example of how fund managers diversified their ETF portfolios in the past to spread risk and potentially enhance returns.</p>
<p>He mentioned the introduction of the first gold spot ETF in November 2004, the SPDR Gold Trust (GLD), which revolutionized gold trading by providing a convenient and liquid way for investors to gain exposure to gold without the need to physically hold the metal.</p>
<p>When silver ETFs were introduced, investors added these positions and diverted funds to them, particularly due to the increasing demand for silver for industrial uses.</p>
<p>“The same may hold true for Ethereum spot ETFs given Ethereum’s use cases,” he added.</p>
<p>Ethereum’s price slightly declined by 0.65% over the past 24 hours and was trading at $3,667 at 5:41 a.m. ET.</p>
<p>The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, decreased by 1% to 141.79 in the same period.</p>

Ethereum ETFs May Seize 20% of Bitcoin’s ETF Market, Analyst Forecasts

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