Bloomberg Senior ETF Analyst Eric Balchunas tempered the excitement over spot Ethereum exchange-traded funds (ETFs), suggesting they may attract only a fraction of the investments seen in Bitcoin ETFs.On May 20, reports indicated a 75% chance that the US Securities and Exchange Commission (SEC) would approve an ETH ETF, starkly contrasting the previous pessimism surrounding the financial instruments.The news spurred more than a 20% increase in ETH’s price, pushing it above $3,700, according to CryptoSlate’s data. Additionally, the blockchain analytical platform IntoTheBlock pointed out that this price spike pushed 90% of ETH holders to profit.This bullish trend led some market analysts to predict significant inflows for ETH ETFs, akin to the success of BTC ETFs launched in January. Since the debut of spot Bitcoin ETFs in the US, these funds have amassed approximately $13 billion in assets under management, according to Farside Investors data.However, Balchunas remains skeptical, estimating that ETH ETFs might only capture “10-15% of the assets of BTC ETFs.” He commented:“I think me comparing Ether ETFs following Bitcoin ETFs to a concert where Sister Hazel comes on after Nirvana is probably why a few people [are] coming at me on this and that’s ok. Maybe that was harsh but I still see the Ether etfs getting 10-15% of the assets of the BTC ETFs.”In parallel, Fidelity submitted an updated S-1 registration statement to the SEC for its proposed Ethereum ETF ahead of key deadlines.The revised document has removed all traces of staking or staking rewards. Previously, the prospectus indicated the fund would stake some assets with a provider to earn rewards.Analysts believe this change is due to the SEC’s scrutiny of crypto staking. The SEC has sued major exchanges like Kraken and Coinbase, alleging their staking products breach federal securities laws.Balchunas added:“Looks like you got a final answer as to whether SEC will allow staking: No. As this is first amendment of any document to roll in post-SEC 180 and their comments to issuers yesterday.”Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Must-read crypto news & insights. Delivered daily.Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.Rob Marrocco believes crypto ETFs beyond Bitcoin and Ethereum are unlikely without first establishing a futures market or changing regulation.Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.All spot ETH ETFs have yet to launch despite recent developments.ICBC compared Bitcoin to gold and said Ethereum has established itself as “digital oil” capable of powering myriad applications across the web3 ecosystem.DeFillama data shows the platform’s TVL rose 135% despite the attack.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
