The cryptocurrency market is busy discussing the potential approval and implications of Ether ETFs. However, not all industry experts are optimistic about its immediate future.
Eric Balchunas, a senior Bloomberg analyst, has expressed skepticism, comparing the excitement around Ether ETFs to an opening act trying to follow a headliner.
This might indicate that the much-hyped Ethereum ETFs may not live up to the hype, especially when compared to spot Bitcoin ETFs.
This sentiment casts a shadow of doubt over the potential impact of Ether ETFs on the cryptocurrency landscape.
Major hurdles
Jake Chervinsky, chief legal officer at Variant, recently expressed his concerns regarding the approval of ETH ETFs this year.
Citing political pushback faced by the SEC during the approval of Bitcoin ETFs and the current market's volatile nature, Chervinsky stressed the regulatory body's cautious stance.
The SEC's hesitancy, coupled with its ability to justify denial based on legal grounds, even if questionable, shows how hard it would be for Ether ETFs to get the green light.
Despite BlackRock's influential position and previous successes in securing ETF approvals, Chervinsky argues that the SEC's request for withdrawal could be a likely scenario.
Still big deal?
Not everyone is subscribing to this cautious outlook. Nate Geraci, president of The ETF Store, predicts that spot Ether ETFs could have a more significant impact than many anticipate.
Drawing parallels with the underestimated demand for spot Bitcoin ETFs, Geraci points out ETH's substantial market capitalization, which stands at one-third of Bitcoin's.
With the spot Bitcoin ETF category already amassing approximately $50 billion, the introduction of Ether ETFs could potentially tap into a significant market interest.
As reported by U.Today, BlackRock's Bitcoin ETF recently surpassed $10 billion in assets under management. It set a new record for the fastest ETF to reach this threshold. The record was previously held by a gold-focused fund for several decades.
Tomiwabold Olajide
Arman Shirinyan
Yuri Molchan
