The post The implications of the Ethereum ETF and beyond appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. After launching our own Ethereum exchange-traded funds in Hong Kong, we’ve experienced firsthand the unlock that comes with greater visibility among investors. We saw an immediate shift in the enthusiasm, tone, and tenor of our conversations with investors, both institutional and retail, who saw this moment as a shift in legitimacy for the asset class.  So, as Ethereum (ETH) ETFs start trading in one of the world’s largest markets this week, we see this as another milestone on the path to full integration of digital assets into traditional finance. This move paves the way for more diverse financial products, including cryptocurrency basket ETFs, ETFs with staking options, tokenized securities, and other financial innovations. So, what will the real impact of expanded access to ETH as an investment class really be? Will we see ATHs in the coming months? How can we overcome Ethereum’s complexity as infrastructure compared to Bitcoin’s reputation as digital gold? Let’s explore these questions and how they may result in a more gradual adoption curve among investors. The BTC effect When spot Bitcoin (BTC) ETFs debuted, they saw over $25 billion traded in the first month. It’s unlikely that Ethereum ETFs will match this volume initially, considering Ethereum’s average 24-hour trading volume is currently at a 70% discount compared to Bitcoin. We expect spot Ethereum ETFs to trade between $15 billion and $20 billion in the first month. Of course, it’s possible that the inflows will be larger than we expect. This would indicate a bullish sentiment that could drive momentum and give Ethereum a positive psychological push as an accepted asset class for investors of all kinds.  However, many investors will be comparing…

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Filed under: News - @ July 28, 2024 8:04 am