Ethereum Following approval from the Securities and Exchange Commission, the exchange-traded fund will finally be listed on the U.S. market tomorrow. I said yes May products signed Regarding today’s transaction.
of Bitcoin equivalent has been a huge success Its release Launched in January, the fund allows investors to buy shares linked to the price of cryptocurrencies, and has attracted a lot of attention as it means traditional investors who have been scared of the complex crypto industry can finally invest in assets on a traditional stock exchange.
So will traders once again rush to pump cash into new Ethereum funds? ETH price reaches all-time highIs this as some have predicted?
Market experts say to stay calm DecryptionIt may take a while for things to settle down.
“I think ETH ETF inflows will be disappointing.” Greg Magadini, director of derivatives at blockchain data provider AmberData, said: DecryptionHe noted that demand for Ethereum futures has been “sluggish” ahead of the launch.
Magadini said that before the Bitcoin ETF selloff, the derivatives market, which involves betting on the asset’s future price, was booming as traders were desperate for exposure to the asset.
That is not the case this time. “Hence, demand for ETH exposure will likely be disappointing relative to BTC,” he added.
James Butterfill, head of research at Jersey-based asset management firm CoinShares, pointed to Grayscale as another potential negative factor.
The leading crypto asset manager plans to launch two products: a main ETF and a mini-ETF. The main ETF is a fund-to-ETF that operates like a closed-end product. ETFs, by their very nature, can be easily converted into cash.
That’s to be expected, Butterfill said. DecryptionInvestors will likely want to cash out as soon as the Grayscale ETF goes public. What happened Grayscale converted its Bitcoin Trust into an ETF in January Downward pressure Depending on the price of the asset.
“The first few weeks will likely be marred by outflows from the Grayscale ETH product, similar to the outflows that occurred when the Bitcoin closed-end fund became an ETF, with investors being ‘trapped’ by a large discount to net asset value,” he said.
He added that the approval is positive for the digital asset sector as a whole and may ultimately “increase market stability and investor confidence.”
Regarding mini funds, Billy Luedke, CEO and founder of Ethereum-based authentication protocol Intuition, said mini trusts could help drive ETH price growth.
” [mini trust] “It offers investors a tax-free exchange into the new ETF and a fee structure that is more attractive to skeptics,” he said. Decryption. “We expect Ethereum to attract significant capital due to lower barriers to entry, improved fee structures and tax incentives that make it more attractive to investors, and increased awareness.”
Finally, Patrick Felder, Founder and CIO of Prismatic Capital, said: Decryption The market is expecting around 15-25% of the inflows seen in Bitcoin ETFs.
He added that if inflows are stronger than this, “it will reset market expectations and drive a big surge in ETH price.”
Edited by Ryan Ozawa.
