Follow the sudden approval Ethereum Spot ETF was introduced last week. speculations The speculation about the performance of these ETFs continues to grow ahead of their first trading session. James Seyffart, the renowned Bloomberg ETF Analyst, has recently weighed in with his opinion on how much investment Ethereum-based spot ETFs might attract compared to Bitcoin equivalents.
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Then, you can get in touch with us. interview session on X Seyffart, who was a guest on the Bitwise Chief Investor Matt Hougan’s May 24, hosted event, stated that Ether spot-ETFs will likely see a maximum 25% of demand as seen with Bitcoin spot-ETFs.
Seyffart made his prediction based on several elements, including the enormous difference in market cap between two assets. According to data from CoinMarketEthereum’s market share is valued at $449.25 Billion, which roughly equals 30% of BTCs market capitalization of 1.35 Trillion.
The analyst has also pointed out the huge disparities between the ETFs as well as their base assets. Seyffart says that the gap between Ethereum’s ETF and its cryptocurrency is greater than Bitcoin, both as ETFs or as currency.
ETF analysts believe that the ETH ETFs on spot will restrict investors to native ETFs features like staking. source “Passive income” and other use cases on the chain in terms of NFTs DAOs etc. Hence, some investors may prefer to directly invest in altcoins.
Seyffart’s predictions are based on all of these factors. “big launches” Bitcoin ETFs are not available at the same price as Bitcoin spot. Once trading begins, he predicts that Ethereum Spot-based ETFs are likely to record investments between 20-25%. Eric Balchunas is a Bloomberg colleague who appears less positive with his estimate of 15-20%.
The performance of Ethereum ETFs is likely to influence other crypto ETFs which may be approved by the US Securities and Exchange Commission. Currently, many experts are tipped the XRP ETF to be the next big thing. next XRP may be a relatively new player in the market. However, it is subject to various factors.
Ethereum Price Overview
Ethereum has gained 0.51% in the past day and is currently trading at $3 766. The slight increase in price is a reflection of Ethereum’s performance over the past week, with an overall gain of 20.47%. ETH daily trading volume has fallen by 51.27 percent and now stands at $10.03 Billion.
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Chart from Tradingview, Featured Image from BitMEX
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Source: www.newsbtc.com