Can Ethereum ETFs match the success of Bitcoin ETFs? 🧐

With Ethereum ETFs now trading since July 23, 2024, they hold the potential to attract significant inflows.

Factors influencing their success include:

Staking and Locked Assets:

A significant portion of ETH is locked in staking, bridges, and smart contracts, reducing circulating supply and increasing price sensitivity.
As of mid-2024, around 15% of ETH supply is staked in the Ethereum 2.0 contract, with additional amounts locked in DeFi protocols and bridges.

Retail and Institutional Demand:

Initial inflows are expected from retail investors due to easier access through ETFs. Institutional interest is likely to grow as wealth management platforms increase accessibility.
Since Ethereum in ETFs doesn't earn staking rewards, it might not be as appealing to investors looking for regular returns.

Comparison with Bitcoin ETFs:

Bitcoin ETFs attracted $15.1 billion in the first five months, setting a benchmark for Ethereum ETFs.

What are your thoughts on this? 🤔

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