This Is Why the Ethereum ETF Is Likely to Take 20% of the Money Flow from the Bitcoin ETF
The initial article on Coinpedia Fintech News stated that Ethereum ETF is expected to appropriate 20% of the money flow from Bitcoin ETF.
U.S. Bitcoin ETF inflows reached a record $1.8 billion last week, the 19th day in a row of rising demand.
Within the cryptocurrency ecosystem, there is a belief held by many that 10% to 20% of the money currently invested in spot Bitcoin ETFs may shift to Ethereum once Spot Ethereum ETFs launch.
While S-1 registration statements are being examined by the government and are required for final clearance and incorporate significant disclosures.
Ethereum ETFs Are Increasing
According to Jag Kooner, Head of Derivatives at Bitfinex, a well-known cryptocurrency exchange, Spot Ethereum ETFS is predicted to take up to 20% of US investors’ money that are presently allocated to Bitcoin ETFs once it launches. Kooner also emphasised how crucial it is that the US SEC provide more clarity in the future regarding whether staking will be allowed for spot Ethereum ETFs.
ETH ETFs are poised to appropriate 10–20% of the Bitcoin ETF flows. When spot #Ethereum ETFs are fully launched, they may potentially take up to a fifth of the current inflows to spot #Bitcoin ETFs in the US, per an analyst at @bitfinex, a top exchange.
BSCN (@BSCNews) in 2024 on June 10
This change is a result of investors realising Ethereum’s distinct advantages and wanting to diversify their investment portfolios.
Kooner also draws comparisons to a comparable historical period during the early 2000s introduction of Gold and Silver ETFs. Even though Gold ETFs were introduced for the first time in 2004, the introduction of Silver ETFs in 2006 caused a substantial shift in investing habits.
It is possible that the increased demand for silver across a variety of businesses caused the spike in investor interest.
many to seize these fresh chances.
ETF for ETH Must Wait Longer
Ethereum ETFS lag behind Bitcoin spot goods while awaiting official registration, even after getting approval. Prominent financial firms like Fidelity and BlackRock are still awaiting SEC approval before they can start selling Ethereum ETFs.
Conversely, JPMorgan projects that net inflows into Ethereum ETFs would be less than those into Bitcoin, which have risen to $15.3 billion as of late.
But according to a number of experts, Ethereum ETFs might only get net inflows of $2–$4 billion over the remainder of 2024. Furthermore, it is anticipated that Ethereum would require some time to overtake Bitcoin. that has $70- to overtake Bitcoin, which holds about 20% of the market with $70 billion in ETF assets.
NEW: Over $70 billion of Bitcoin is now held by Global Spot Bitcoin ETFs, which represents 5% of the total amount of Bitcoin. pic.twitter.com/NYqldI5SIn
June 10, 2024 — Bitcoin Magazine (@BitcoinMagazine)
Conclusion
In conclusion, the tokens discussed exhibit significant potential within the volatile landscape of cryptocurrency, driven by bullish sentiments and notable market activity. However, it’s crucial to acknowledge the inherent risks associated with investing in digital assets, characterized by their high volatility and market fluctuations. This analysis does not constitute investment advice but rather offers a projection of market trends based on current data. Investors are advised to conduct thorough research and consider their risk tolerance before engaging in cryptocurrency trading.
Disclaimer and Risk Warning
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