TechFlow reported that as the U.S. Securities and Exchange Commission (SEC) finally approved the Ethereum ETF, several well-known cryptocurrency companies are cautious about its first-day performance. Wintermute, a major market maker, expects the Ethereum ETF to attract a maximum of $4 billion in inflows in the next year, lower than the $4.5 billion to $6.5 billion generally expected by analysts, and far lower than the $17 billion attracted by the Bitcoin ETF within six months of its listing. Despite this, Wintermute expects ETH prices to rise by 24% in the next 12 months.
Research firm Kaiko pointed out that the Ethereum futures ETF launched last year had tepid demand and the market had high hopes for spot ETFs. Kaiko data showed that Ethereum's implied volatility rose sharply over the weekend, with the most recent contract expiring (July 26) jumping from 59% to 67%, indicating that traders are willing to pay a higher premium to hedge risks.
It is worth noting that the SEC rejected the issuer's request for ETFs to pledge Ethereum, which may reduce the competitiveness of ETH ETFs relative to direct holdings. The management fee rates of various issuers have been announced, with Grayscale charging 2.5%, while most other managers keep the fees between 0.15% and 0.25%. Several institutions including BlackRock, Fidelity, Grayscale, VanEck, Franklin Templeton, Bitwise, 21Shares and Invesco will begin offering ETH ETF products today.
