Ethereum
Ethereum ETF Approvals Leads Hedge Funds, VanEck Analyst Says
Financial institutions are likely positioning themselves for the launch of the Ethereum spot (ETH) exchange-traded fund (ETF), according to a VanEck analyst.
Matthew Sigel, head of digital assets research at VanEck, said that hedge funds are leading the approval of ETH ETFs in the United States.
Sigel cites data from K33 Research showing a sharp increase in flows into Ether exchange-traded products (ETPs) outside of US markets.
“Hedge funds are leading in ETH ETF approvals, ETH on exchanges is near an all-time low, and fundamentals are improving.
I could eat a BBQ HODL hat by the 4th of July.
And you are bearish?
Source: Matthieu Sigel/X
Sigel also shares a chart from blockchain analytics firm CryptoQuant showing a downward trend in ETH supply on exchanges, suggesting a buildup of Ethereum among large players.
Source: Matthieu Sigel/X
In a recent interview With the Bankless Podcast, Sigel says VanEck views Ethereum as an “open source App Store,” and according to the analyst, it’s not entirely unlikely that at some point an ETH ETF could be more successful than Bitcoin ETFs.
“Now that the SEC has at least theoretically approved spot trading of Ethereum ETFs, it is obviously important to explain the investment case for this asset. Overall, there is a larger market for income-producing assets than for inert assets like Bitcoin (BTC). It is therefore not impossible that in a decade the market for an Ethereum ETF will be larger than that of Bitcoin, but in the meantime we need to educate traditional financial market participants about the importance of this asset.
Many analogies have been attempted and the one we have focused on is “the open source App Store”.
We believe that Ethereum is a productive asset that allows anyone to open a storefront on this network, and it can do so at a lower acceptance rate than big tech currently charges. So it’s an open source App Store with payment features built in essentially for free, and we wanted to explain the mechanics of how it works and encrypt Ethereum’s Profit and Loss Statement (OPNL).
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