Bloomberg ETF Analyst: Demand for Ethereum Spot ETF May Reach 20% to 25% of Bitcoin Spot ETF

2024-05-25 17:39:23

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ChainCatcher news, according to CryptoSlate, Bloomberg ETF analyst James Seyffart believes that the demand for Ethereum spot ETFs may reach 20% to 25% of that for Bitcoin spot ETFs.

Seyffart expressed his position in an interview hosted by Bitwise, adding that his colleague, Bloomberg ETF analyst Eric Balchunas, believes that new funds will see a demand of 15% to 20%.

Seyffart compared these two estimates with the fact that Ethereum's market cap is about 30% of Bitcoin's market cap of approximately $1.4 trillion, stating that his estimates are a "discount" in this regard.

He attributed the difference to certain limitations of each product. ETH ETF issuers will not participate in staking, meaning that unlike ETH holders, ETF investors will not be able to earn yields. Additionally, Ethereum's on-chain utility is stronger than that of Bitcoin, and ETF investors will not have access to these utilities.

Ultimately, Seyffart predicts that the spot Ethereum ETF will have a "grand launch," but it will not be as grand as the spot Bitcoin ETF. "There will be demand," he concluded.

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