Bloomberg ETF analyst James Seyffart took part in an interview hosted by Bitwise CIO Matt Hougan, who in turn predicted "significant demand."
Bloomberg ETF analyst James Seyffart believes that spot Ethereum ETFs could see 20% to 25% of the demand experienced by spot Bitcoin ETFs.
Seyffart expressed his stance in an interview hosted by Bitwise, adding that his fellow Bloomberg ETF analyst, Eric Balchunas, believes the new funds will see 15% to 20% of the demand.
Seyffart compared both estimates to the fact that ETH has approximately 30% of Bitcoin’s $1.4 trillion market cap, calling his estimate a “discount” in that regard.
He attributed the difference to certain limitations of each product. ETH ETF issuers will not engage in staking, meaning that, unlike ETH holders, ETF investors cannot earn yield. Furthermore, Ethereum has greater on-chain utility than Bitcoin, and ETF investors will not be able to access it.
Seyffart declared:
” … The gap between Ether as an ETF and Ether itself … is a little wider than the gap between Bitcoin and Bitcoin as an ETF wrapper.”
Seyffart said that Ethereum futures ETFs, which have just 12% of the assets compared to futures ETFs in the US, do not provide a “good sample” for an estimate. ETH futures ETFs in foreign markets have 20% to 30% of assets proportionate to Bitcoin futures ETFs.
Ultimately, Seyffart predicted spot ETH ETFs would have “big launches” but not as big as spot Bitcoin ETF launches. “There’s going to be demand,” he concluded.
Bitwise CIO expects significant demand
Bitwise CIO Matt Hougan predicted “significant demand” for spot Ethereum ETFs.
Hougan said that demand will likely come from two sources. First, he suggested that many investors treat diversification as a “fundamental starting point.”
He predicted that “many investors” but “not a majority” would initially pursue a diversification strategy. Hougan also suggested that engagement could increase over time, with a majority of professional investors wanting diversified exposure within five years.
Hougan said:
“[Investors] don’t want to own one stock. They don’t want to own one bond. Why would they own just one crypto asset?”
Secondly, Hougan said that Ethereum’s role as a “high growth tech investment” will appeal to investors, citing “killer apps” such as stablecoins, non-fungible tokens, DeFi, gaming, and social apps.
ETH ETFs gained initial approval
The US SEC approved several 19b-4 rule changes on May 23, which will allow exchanges to list and trade several pending spot ETH ETFs.
One proposal that gained approval was NYSE Arca’s filing on behalf of Bitwise’s proposed fund.
The SEC must still handle each firm’s S-1 registration statements.
A launch date is unclear. Seyffart believes launches will occur in weeks or longer. JP Morgan believes the products will launch before November. (Cryptostale)
#ETHETFsApproved #BinanceLaunchpool #BlackRock

JPMorgan said crypto has become "an increasingly political issue ahead of the 2024 US presidential election."
JPMorgan predicts that the newly approved spot Ethereum exchange-traded funds (ETFs) will likely begin trading before the November US presidential elections, citing crypto’s increasing political significance.
This outlook follows the US Securities and Exchange Commission’s (SEC) unexpected approval of eight spot Ethereum ETFs on May 23, marking a notable shift from the previous skepticism surrounding these financial instruments.
The SEC approved the 19b-4 forms for the Ethereum ETFs, which include offerings from VanEck, BlackRock, Grayscale, and Fidelity. However, these products still require activating their S-1 registration statements before trading can commence.
JPMorgan emphasized this development, stating:
“The issuers’ registration statements remain under review by the SEC. As such, there is no anticipated date on when these ETFs will begin trading.”
While Galaxy analysts foresee trading starting as early as July or August, JPMorgan maintains a more cautious stance. They believe that political factors related to ETF approval and crypto regulation could influence the timeline. They noted:
“We note this important step yesterday towards the final approval comes after a sudden reversal in regulatory sentiment earlier this week when the SEC seemingly re-engaged with stakeholders after months of stalled conversations.”
This perspective aligns with recent significant political and regulatory developments in the crypto industry.
Last week, the House passed FIT21, a significant legislative effort to clarify the SEC’s role in crypto regulation. Additionally, President Joe Biden expressed willingness to cooperate with Congress to establish a comprehensive and balanced regulatory framework for digital assets.
Moreover, former President Donald Trump announced he would accept crypto for campaign donations.
These events, combined with both houses of Congress voting to overturn an SEC crypto-related rule despite President Biden’s veto threat, signal a major stride toward mainstream acceptance of crypto as a financial asset. (Data via cryptostale)
#ETHETFsApproved #BinanceLaunchpool #BlackRock

Amid SEC's revised filing request, optimism grows for Ethereum ETF approval by week's end.
The SEC could approve a spot Ethereum ETF as early as this week, marking a significant shift in regulatory stance. Bloomberg analysts Eric Balchunas and James Seyffart have increased their odds of approval to 75%, up from 25%, citing recent chatter and the SEC’s request for revised 19b-4 filings by 10 am Tuesday. This rapid development has led to a scramble among applicants, including major players like BlackRock, Grayscale, and Fidelity.
BlackRock, the world’s largest asset manager, has a strong track record with the SEC, having only one ETF application denied in 2014. That ETF, the BlackRock Total Return ETF, was initially rejected due to concerns over transparency and alignment with its net asset value (NAV). However, an updated version of this ETF, addressing the SEC’s concerns, went live in December 2023, just a month before the approval of Bitcoin ETFs. This history emphasizes BlackRock’s ability to navigate regulatory challenges successfully.
The SEC’s decision on Ethereum ETFs has been eagerly anticipated, with deadlines for various applications approaching. Data from Bloomberg Terminal shared by James Seyffart lists the ETFs awaiting approval, including those from VanEck, ARK 21Shares, Hashdex, Grayscale, Invesco Galaxy, Fidelity, Franklin, and Bitwise. These applications have faced multiple delays, but the recent push for revised filings suggests a potential breakthrough.
Grayscale and BlackRock have been proactive in updating their applications. Grayscale filed an S-3 registration statement to convert its existing Ethereum Trust to a spot ETF and an S-1 for a mini Ethereum ETF. BlackRock’s Nasdaq amendment to its 19b-4 filing proposes cash-based creation and redemptions, aligning with other Ethereum ETF applications and previously approved Bitcoin ETFs.
The SEC’s cautious approach has been influenced by concerns over market manipulation and the need for comprehensive market data on Ethereum. However, the approval of spot Bitcoin ETFs earlier this year, following a court victory by Grayscale, and the launch of spot Ethereum ETFs in Hong Kong, has raised hopes for similar products for Ethereum. The SEC’s recent interactions with ETF issuers have been described as one-sided, with agency staff withholding substantive comments, leading to speculation about potential rejections.
Despite these challenges, the crypto community remains optimistic, with Ethereum rising 17% in the past 24 hours. The approval of a spot Ethereum ETF would provide a regulated and accessible way for investors to gain exposure to Ethereum, potentially increasing market liquidity and stability. The involvement of prominent asset managers like BlackRock and Fidelity adds credibility to these products, which could attract institutional investors and drive further adoption of cryptocurrencies.
While not guaranteed, BlackRock’s storied history of overcoming regulatory hurdles and having products approved suggests the odds are in their favor this week. An Ethereum ETF greenlight would mark a new era for crypto’s mainstream integration.
#ETHETFS #BTC #