Bloomberg analysts say the Ethereum ETF could account for only 15% of the Bitcoin ETF’s assets.

Bloomberg senior ETF analyst Eric Balchunas tempered excitement about a spot Ethereum exchange-traded fund (ETF), suggesting that it could attract only a fraction of the investment seen in Bitcoin ETFs.

According to a May 20 report, there was a 75% chance that the U.S. Securities and Exchange Commission (SEC) would approve the ETH ETF, a stark contrast to the previous pessimism surrounding the financial product.

This news reportedly caused the price of ETH to rise by more than 20%, exceeding $3,700. CryptoSlate’s data. IntoTheBlock, a blockchain analytics platform, also pointed out that 90% of ETH holders benefited from this price surge.

This bullish trend has led some market analysts to predict significant inflows into the ETH ETF, similar to the success of the BTC ETF launched in January. Since the launch of the spot Bitcoin ETF in the U.S., the fund has amassed about $13 billion in assets under management, according to Farside Investors data.

However, Balchunas remains skeptical, estimating that the ETH ETF could only capture “10-15% of the assets of the BTC ETF.” He commented:

“Comparing a Bitcoin ETF followed by an Ether ETF to a concert featuring Sister Hazel after Nirvana is probably why so few people come to me. it’s okay. Maybe that was harsh, but it still appears that the Ether ETF accounts for 10-15% of BTC ETF assets.”

Fidelity eliminates staking

At the same time, Fidelity filed an updated S-1 registration statement for its proposed Ethereum ETF with the SEC ahead of a key deadline.

The revised document removes all traces of staking or staking rewards. Previously, the prospectus stated that the fund would invest some of its assets in the provider to earn rewards.

Analysts believe this change is due to the SEC’s cryptocurrency staking investigation. The SEC has filed lawsuits against major exchanges such as Kraken and Coinbase, alleging that their staking products violate federal securities laws.

Balqunas added:

“It looks like the SEC has a final answer on whether it will allow staking. No, because this is the first amendment to all documents published after SEC 180 and comments to issuers yesterday.”

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