Will the Ethereum ETF definitely promote growth as soon as it is traded?
Not necessarily, it depends on these two aspects.
1. Inflationary pressure on ETH supply
Recently, the supply of ETH has unexpectedly returned to the expansion cycle, which is in sharp contrast to the de-inflation environment achieved after the merger of Ethereum. Due to the decline in transaction activity on the Ethereum network, the amount of destruction of transaction fees has been reduced, which in turn has led to an increase in market supply.
In the past four weeks alone, the number of ETH in circulation has surged by 60,000. If this trend does not change, it may cover up the momentum of capital inflows into spot Ethereum exchange-traded funds (ETFs), putting downward pressure on the price of ETH.
2. On the other hand, the Chicago Board Options Exchange (CBOE) recently announced five upcoming Ethereum spot ETF products.
They are Fidelity’s FETH, VanEck’s ETHV,
21Shares’ CETH, Invesco Investment’s QETH,
and Franklin Templeton Funds' EZET.
These emerging ETFs are embroiled in a fierce competition over fee structures.
Among them, Franklin Templeton stands out with the lowest fee of 0.19%, which is significantly lower than the 0.2% of Bitwise and VanEck, and ahead of the 0.25% fee level of BlackRock, Fidelity and Invesco Galaxy. Rates may also prompt institutional selling pressure.
Again, I don’t know how to lay it out. If I want to keep up, I always make random orders. Click on my avatar and follow the homepage.
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