Market prospects and challenges coexist
Citi pointed out that one factor that may affect capital inflows is the lack of staking functions for Ethereum spot ETFs. In contrast, Bitcoin has benefited from its first-mover advantage and has attracted billions of dollars in capital inflows and shown strong growth before the Ethereum ETF was approved for listing.
Nevertheless, the Citi report also emphasized that the situation is not entirely pessimistic. The timing of the listing of the Ethereum spot ETF may coincide with the Federal Reserve's gradual shift to a dovish policy, which may mean lower interest rates, stronger stock markets and a weaker dollar, an overall economic environment that may support the cryptocurrency market.
In addition, Citi believes that although the inflow of funds to the Ethereum spot ETF may not be as good as that of Bitcoin, its diversified and wide application scenarios still have the potential to attract a lot of investment in the long run. Especially in the blockchain technology and DeFi industries, the application of Ethereum is constantly expanding its functions, which will help improve its market position.
Overall, Citi's forecast provides investors with a comprehensive perspective on the prospects of the Ethereum spot ETF market. Although there are challenges in the short term, as the market matures and the overall economic environment changes, Ethereum spot ETFs are likely to become the focus of investors.
