Financial institutions are currently preparing for the launch of a spot Ethereum (ETH) exchange-traded fund (ETF), as indicated by a VanEck analyst.
According to Matthew Sigel, head of digital assets research at VanEck, hedge funds are anticipating the approval of ETH ETFs in the US.
Sigel references data from K33 Research that shows a significant increase in inflows to Ether exchange-traded products (ETPs) in markets outside of the United States.
“Hedge funds are anticipating the approval of ETH ETFs, ETH on exchanges is at a near all-time low, and fundamentals are strengthening. I might be proven wrong by July 4th. Are you bearish?”
Sigel also presents a chart from blockchain analytics firm CryptoQuant that displays a decrease in ETH supply on exchanges, indicating that large players are accumulating Ethereum.
During a recent interview with the Bankless podcast, Sigel describes Ethereum as an “open-source App Store,” suggesting that an ETH ETF could potentially outperform Bitcoin ETFs in the future.
“Now that the SEC has theoretically approved spot Ethereum ETFs for trading, it is crucial to outline the investment case for this asset. There is a larger market for income-producing assets compared to inert assets like Bitcoin (BTC). It is plausible that in the next decade, the market for an Ethereum ETF could surpass that of Bitcoin. However, for now, we need to educate traditional financial market participants on the significance of this asset.
We have compared Ethereum to an open-source App Store, where anyone can establish a storefront on the network with lower fees than those charged by Big Tech. Ethereum is essentially an open-source App Store with integrated payment functionality, and we aim to elucidate the mechanics behind this and provide a breakdown of Ethereum’s profit and loss statement.”
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