ETH đ¤? It's going to be a hit.
With the approval of Ethereum spot ETFs, the market is seeing parallels with the impact of BTC ETFs. The approval of spot BTC ETFs exploded institutional demand, which was a major price driver. ETH will now (IMO) follow a similar path, but with specific dynamics due to its unique characteristics in the blockchain ecosystem.
Ethereum Futures ETFs have already been approved by the SEC, are based on futures contracts traded on the CME and have had a limited effect on the price, as they do not involve direct purchase of ETH in the spot market đĄ
Spot ETH ETFs have not yet been approved by the SEC, but already exist in other markets. These are backed directly by ETH held in custody. Greater impact, as they generate direct demand for the underlying asset (ETH), as we saw with spot Bitcoin ETFs.
In other words, futures ETFs have provided some traction, but spot ETFs are still the âmissing catalystâ for a stronger price movement as they bring more liquidity, regulatory validation, and the entry of conservative institutional investors.
This, combined with DeFi growth and increasing use of its L2, reinforces the bullish momentum.
ETH vs BTC
BTC ETFs have created a new class of institutional investors who do not want custody and complexity. ETH ETFs will replicate this effect, possibly with greater impact đ. This is due to Ethereumâs role as a basis for smart contracts, DeFi, and NFTs, broadening its appeal beyond its use as a store of value (like BTC)
Here are the main catalysts:
1. ETF approvals: more liquidity and institutional validation, increasing trading volume.
2. DeFi growth: ETH remains the predominant basis as it continues to recover TVL and develop new products.
3. Market Mood: favorable macroeconomic scenario, reduction of geopolitical risks and growing interest in asset classes
Although there is competition from other blockchains, ETFs, DeFi growth and adoption point to growth.
