TL; DR
Full story
We touched on it this morning in article one, but it deserves more attention.
ETH ETFs Start Trading in the US Today!
After receiving their initial approval in May, several companies have spent the last few weeks updating and updating their forms – a huge job – to finally be approved and ready to trade.
Here’s how we look at it:
Bitcoin ETFs have generated over $17 billion in total inflows since their launch to date – that’s our baseline measure.
Anything above that within the first six months would be enormous for crypto.
Some people think that there will be less demand for the ETH ETFs than the BTC ETFs simply because ETH is an altcoin – that theory will be tested!
Finally, for better or worse, Ethereum is a very different technology than Bitcoin.
For example, an important part of Ethereum is the ability to stake your crypto and receive interest for it (also called ‘staking rewards’).
Due to regulations, the ETH ETFs are not allowed to stake their ETH holdings.
So, unlike BTC, which is primarily a financial product (alongside Ordinals and Runes etc, but hear us out), we’ll see for the first time if people actually want to hold ETH in the form of shares (via the ETFs), or whether investors choose to become a little more knowledgeable about what Ethereum really is, and they start to benefit from things like staking.
Either way, the fact that ETH ETFs are becoming tradable on the US stock markets brings them to the attention of investors and will undoubtedly lead to additional purchases that would not otherwise have happened.
Magic eight ball says: Outlook good!
