📢 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗘𝗧𝗙𝘀 𝗔𝗿𝗲 𝗙𝗶𝗻𝗮𝗹𝗹𝘆 𝗛𝗲𝗿𝗲, 𝗕𝘂𝘁 𝗘𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗔𝗿𝗲 𝗠𝗶𝘅𝗲𝗱 📢
@CoinDesk report: The U.S. Securities and Exchange Commission (SEC) has approved Ethereum ETFs to start trading on July 23,, marking a major milestone for the crypto industry and opening the doors for both institutional and retail investors to easily gain exposure to ETH through regulated investment vehicles.
However, prominent crypto firms like Wintermute are predicting a relatively muted debut, with inflows potentially reaching $4 bn over the next year, falling short of analyst expectations of $4.5 bn to $6.5 bn. This is significantly lower than the $17 bn Bitcoin ETFs have collected since their launch six months ago.
💡𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀 𝗮𝗻𝗱 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀💡
- Mixed Expectations: While ETH ETFs are a significant development, some experts predict a more moderate initial impact on inflows compared to Bitcoin ETFs.
- Staking Limitation: The inability to stake ETH within ETFs could deter some investors who seek to maximize their returns.
- Volatility Concerns: Increased implied volatility indicates market uncertainty and a cautious approach among traders.
- Long-Term Potential: Despite initial reservations, Wintermute predicts a 24% price gain for ether over the next 12 months, driven by ETF inflows.
- Competition on Fees: Issuers are offering varying management fees, with Grayscale charging 2.5% and others keeping fees lower in the 0.15% to 0.25% range.
🌐 𝗙𝗶𝗿𝗺𝘀 𝗹𝗮𝘂𝗻𝗰𝗵𝗶𝗻𝗴 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗘𝗧𝗙𝘀🌐
- BlackRock
- Fidelity
- Grayscale
- VanEck
- Franklin Templeton
- Bitwise
- 21Shares
- Invesco
The coming days will reveal how the market responds. Will ETH ETFs live up to the hype or face a slower start? Only time will tell.
