Analyst Predicts Ethereum Spot ETFs To Attract 25% Of BTC Demand – Here’s Why

Following the sudden approval of the Ethereum Spot ETF last week, speculations continue to roll in on the potential performance of these funds ahead of their debut trading session. Most recently, renowned Bloomberg ETF analyst, James Seyffart has weighed in on the subject giving his thoughts on the possible level of investments the Ethereum spot ETFs could pull in relation to their Bitcoin-based equivalents.

ETH Spot ETF Limited By Ethereum’s Utility And Other Factors – Analyst

In an interview session on X on May 24 hosted by Bitwise Chief Investment Officer Matt Hougan, Seyffart stated that the Ether spot ETFs would likely experience a maximum of 25% of the demand seen by the Bitcoin spot ETFs.

Seyffart based his predictions on multiple elements starting with enormous differences in market caps between both assets. According to data from CoinMarket, Ethereum’s total market shares are valued at $449.25 billion which is roughly equal to 30% of BTC’s 1.35 trillion market cap.

Furthermore, the analyst also highlighted the large disparities in the difference between both ETFs and their base assets. According to Seyffart, there is a bigger gap between Ethereum as an ETF and as a cryptocurrency than Bitcoin as an ETF and as itself.

The ETF analyst believes that the ETH spot ETFs will limit investors from native ETH features such as staking, a prominent source of passive income, and other on-chain use cases in terms of DeFi, NFTs, DAOs, etc. Thus, certain investors might prefer to invest directly in the altcoin.

With all these factors in consideration, Seyffart predicts these novel investment funds will produce “big launches” but not at the level of the Bitcoin spot ETFs.  He predicts the Ethereum Spot ETFs will record between 20-25% of investments in their Bitcoin-based peers once trading commences. Meanwhile, fellow Bloomberg analyst Eric Balchunas appears less optimistic with a projection of 15-20%.

Undoubtedly, the performance of the Ethereum spot ETFs will be influential on other crypto spot ETFs that may gain approval from the US Securities and Exchange Commission. Currently, the XRP ETF is tipped by many enthusiasts as the next debutant in the market but this is still subject to many factors, most especially regulatory clarity on the institutional sales of XRP.

Ethereum Price Overview

In other news, Ethereum is trading at $3,766 with a 0.51% gain in the last day. This slight positive performance underscores Ethereum’s form all week with a combined 20.47% gain recorded in the last seven days. Meanwhile, ETH’s daily trading volume is down by 51.27% and is valued at $10.03 billion.

Ethereum
ETH trading at $3,763 in the daily chart | Source: ETHUSDT chart on Tradingview.com

Featured image from BitMEX, chart from Tradingview


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  1. The recent approval of the Ethereum Spot ETF has certainly stirred up excitement and speculation within the crypto community. It’s intriguing to see how experts like Bloomberg’s James Seyffart are analyzing the potential impact of these funds. Seyffart’s insight that the ETH spot ETFs might capture only 25% of the demand seen by Bitcoin spot ETFs highlights the significant market cap differences and the unique utility of Ethereum.

    I find his point about the ETF limiting access to native ETH features like staking, DeFi, NFTs, and DAOs particularly compelling. It makes sense that some investors might prefer direct investment in Ethereum to leverage these functionalities fully. His projection of 20-25% investment levels, compared to Bitcoin ETFs, seems realistic given these factors.

    It will be fascinating to watch how these ETFs perform and their broader impact on other potential crypto spot ETFs, like the XRP ETF, which is still navigating regulatory hurdles. Ethereum’s price action also continues to be robust, reflecting positive sentiment. Overall, this development marks another significant step in the integration of crypto assets into mainstream finance.