"Today's analysis will be a bit interesting."
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- First of all, it will not explode like the $BTC ETF did, and this is the argument of James Seyffart - analyst of#BloombergETF: https://linkedin.com/pulse/ethereum-etf- effect-what-expect-aminabank-tqr3e…
- More specifically, the amount of money poured into it can only be equal to 25-30% of the $BTC ETF in the first months
"This, is it really that bad...?"
- Not really, because $ETH receives less attention and its capitalization is almost 3 times smaller than $BTC, so the amount of money equivalent to 1/3 $BTC ETF poured into is also reasonable, but what about What is truly remarkable is that...
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- Second idea, the product mechanism of $ETH ETF will not allow investors to participate in staking as well as participate in utilities on the $ETH chain.
-> It creates a huge gap between people holding $ETH in the crypto market and people holding $ETH through the $ETH ETF product.
"So what are the advantages and disadvantages of the above argument?"
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- CONS: $ETH ETF will lose some of its appeal, and make the boom smaller and smaller.
- ADVANTAGES (It's very interesting)
+ Retail investors who want to maximize profits from owning $ETH will tend to participate directly in the market instead of through ETFs.
-> Will be an opportunity to promote the $ETH ecosystem. In addition, it will also be a stepping stone for more newcomers to enter this market.
+ On the other hand, because the number of individuals participating in ETFs is less because of product inadequacies. So the buying and selling moves from the $ETH ETF funds will come more from the needs of the fund itself and the big guys.
-> This will be a valuable thing because it helps observe fund movements more intuitively.
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- On the other hand, funds and organizations often have the habit of planning spending at the beginning of each quarter, making many comments that $ETH ETF's S1 application is approved and trading in early July becomes more feasible. .
- And in the long run, even though the boom will not be too strong, with the story of $ETH reserves running out, the impact from ETFs will certainly still have many positive meanings. Run out of!