Ether ETFs Remain Just a ‘Sidekick’ to Bitcoin ETFs, According to Bloomberg Analyst Balchunas
As spot Ether ETFs approach their U.S. launch, questions arise as to whether they will be as successful as their Bitcoin counterparts. According to Eric Balchunas, senior ETF analyst at Bloomberg, the inflows and impact of Ether ETFs will likely be dwarfed by the record-breaking results of spot Bitcoin ETFs.
Bitcoin as ‘crypto hot sauce’
Balchunas compares Bitcoin to a hot sauce that is enough on its own. “Bitcoin is like enough crypto hot sauce. You think, I’m fine. These things move together anyway,” he explains. Ethereum, on the other hand, is harder to explain, he says, and is therefore more likely to be a ‘sidekick’ to Bitcoin.
Different value proposition
The difference in success between Bitcoin and Ether ETFs can be explained by their different value propositions. Bitcoin is often seen as “digital gold” and is relatively easy for investors to understand. However, Ethereum and the broader DeFi ecosystem are more like a tech stock, making them harder for traditional retail investors to understand.
Ether ETF Launch Expectations
While some experts suggest that the Ether ETF launch could be disappointing compared to the Bitcoin ETF launch, Ophelia Snyder, co-founder of 21Shares, is more optimistic. She expects the Ether ETFs to perform well in terms of inflows and significantly outperform the average ETF launch.
Timeline for Spot Ether ETFs
SEC Chairman Gary Gensler indicated on June 25 that the launch of Ether ETFs in the U.S. is “going smoothly,” but he did not specify an exact date. Some analysts predict that the SEC could approve the funds for trading as early as mid-July.
