Analyst points out the ETF that could surpass the value of Bitcoin! The deadline for a decision on approving a Ethereum ETF spot (Ethereum) is getting closer. This is because the United States Securities and Exchange Commission (SEC) is about to make the fund official. Therefore, industry experts are evaluating the possible acceptance and impact of such a fund. Thus, while some argue that investing in an ether ETF would not make sense, others think differently. This is because such funds would likely not allow the distribution of staking rewards. But other players, such as VanEcka global investment firm, believe an ether ETF could attract huge demand.
VanEck, whose Bitcoin Trust (HODL) is among the top 10 ETFs in bitcoin spots available this year, believes an ether ETF could be as big, if not bigger, than bitcoin ETFs. This is a significant challenge considering the more than $10 billion of net inflows into spot BTC products in just about two months of availability.
Ethereum ETF to surpass Bitcoin value
Although Ethereum utilizes a Proof of Stake consensus mechanism, allowing ether holders to earn yield through staking, the chances of SEC approval of spot ether products are still not guaranteed. Bloomberg analysts recently reduced the chances of a regulatory green light – even without the staking aspect – to just 30%. For VanEck, the chances are closer to 50%.
VanEck, which has more than 68 ETFs under management, recently temporarily reduced the management fee for its Bitcoin Trust from 0.2% to 0%. This fee will remain in effect until March 2025 or until the fund reaches $1.5 billion in assets under management.
Source: Atrevida
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
