Hedge Funds Betting on SEC-Approved Spot Ethereum ETF – VanEck

adminJune 19, 2024

Matthew Sigel, head of digital asset research at VanEck, believes financial institutions are preparing for the imminent launch of a spot Ethereum (ETH) exchange-traded fund (ETF) in the United States, despite the funds pending regulatory approval.

Sigel said in a June 18 social media post that the hedge fund is strategically positioning itself in active anticipation of ETF approval.

He added that data from K33 Research shows a significant increase in inflows to Ethereum exchange-traded products (ETPs) outside the U.S. market, suggesting that large investors are preparing for regulatory approval for spot Ethereum ETFs.

According to Siegel:

“Hedge funds are among the first to approve ETH ETFs, ETH on exchanges is near all-time lows and fundamentals are improving. I think I’ll be able to eat my BBQ HODL hat until the 4th of July. But are you bearish?”

Supporting this observation, blockchain analytics firm CryptoQuant reported a downward trend in ETH supply on exchanges, a sign that major players are hoarding Ethereum.

‘Open source app store’

In a recent interview on the Bankless podcast, Sigel said VanEck views Ethereum as an “open source app store,” positioning it as a more diverse and productive asset compared to Bitcoin.

The company believes that the Ethereum ETF could eventually be more successful than the Bitcoin ETF due to the broader market for the income-producing asset.

According to Siegel:

“Overall, there is a larger market for income-generating assets than inactive assets such as Bitcoin (BTC). It is not impossible for the Ethereum ETF market to surpass the Bitcoin market within 10 years.”

Sigel emphasized the need to educate traditional financial market participants about the importance of Ethereum. He drew an analogy that helped clarify ETH’s potential, emphasizing its productive nature and the ability for anyone to create a store on the network at a lower cost than major technology companies.

He added:

“We see Ethereum as a productive asset that provides an open source App Store with integrated payments capabilities. We aim to explain how Ethereum works and provide a detailed analysis of its income statement.”

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Assad Jafri

Editor and Reporter at CryptoSlate

A passionate journalist since the Arab Spring in Yemen in 2011, AJ has been honing his skills globally for over a decade. Specializing in financial journalism, he currently focuses on cryptocurrency reporting.

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