ChainCatcher news, according to CoinDesk, broker Canaccord Genuity analyzed in its quarterly report that the approval of Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs) is encouraging. Although digital assets did not perform as well as traditional assets in the second quarter, potential ETF inflows may reverse the recent trend. Although the inflow of Bitcoin ETFs has slowed from its highs in February, institutional adoption is still growing. More than 50% of large hedge funds worldwide are currently trading/holding spot BTC ETFs. Major institutions have just begun to disclose their holdings. The U.S. Securities and Exchange Commission may soon approve BTC ETF options.

An Ethereum spot ETF could also have a positive impact once it begins trading, and should help expand institutional interest in other assets, benefiting the broader crypto ecosystem, the report added.