Bloomberg analysts predict that the Ethereum spot ETF will attract 25% of BTC demand.

adminMay 26, 2024

Following the sudden approval of the Ethereum spot ETF last week, speculation continues about the fund’s potential performance ahead of its debut trading session. Most recently, renowned Bloomberg ETF analyst James Seyffart weighed in on this topic, offering his thoughts on the level of investment an Ethereum spot ETF could draw relative to its Bitcoin-based equivalent.

ETH Spot ETF Limited to Ethereum’s Utility and Other Factors – Analyst

During a May 24

Seyffart based his predictions on a number of factors, starting with the huge difference in market capitalization between the two assets. According to data from CoinMarket, Ethereum’s overall market share is $449.25 billion, equivalent to 30% of BTC’s market capitalization of $1.35 trillion.

The analyst also highlighted that there is a big difference in the differences between ETFs and their underlying assets. According to Seyffart, there is a bigger gap between Ethereum as an ETF and Ethereum as a cryptocurrency than Bitcoin as an ETF itself.

ETF analysts believe that ETH spot ETFs will limit investors from basic ETF features such as staking, prominent sources of passive income, and other on-chain use cases related to DeFi, NFTs, DAOs, etc. Therefore, certain investors prefer to invest directly in altcoins.

Taking all these factors into account, Seyffart predicts that these new investment funds will produce a “massive launch,” but not at the level of a Bitcoin spot ETF. He predicts that the Ethereum Spot ETF will account for 20-25% of its investments in its Bitcoin-based peers once trading begins. Meanwhile, fellow Bloomberg analyst Eric Balchunas appears less optimistic, with a 15-20% forecast.

Undoubtedly, the performance of the Ethereum Spot ETF will impact other cryptocurrency spot ETFs that may seek approval from the U.S. Securities and Exchange Commission. Currently, the

Ethereum price overview

In other news, Ethereum is trading at $3,766, up 0.51% over the past day. This slightly positive performance highlights Ethereum’s showing throughout the week, with a total gain of 20.47% over the past seven days. Meanwhile, ETH’s daily trading volume decreased by 51.27% and its value reached $10.03 billion.