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Ethereum ETFs Await Formal Registration Despite Consent
While Ethereum ETFs have received initial consent, they are still awaiting formal registration, lagging behind their Bitcoin counterparts. Financial giants like BlackRock and Fidelity are eagerly waiting for the Securities and Exchange Commission (SEC) to approve the registration of Ethereum funds.
Challenges and Comparisons with Bitcoin
According to JPMorgan strategists, Ethereum ETFs are expected to see fewer net inflows compared to Bitcoin, which boasts $15.3 billion in assets. Bitcoin’s status as digital gold and its ability to provide staking rewards for blockchain management are factors that could contribute to its higher demand.
Caroline Bowler, the CO of BTC Markets, highlighted that Ethereum, with a market value significantly lower than Bitcoin’s $1.4 trillion, still has room to grow and establish itself as a valuable asset.
SEC’s Consideration and Market Predictions
After a prolonged period of review, the SEC is contemplating approving spot Ethereum ETFs, following its approval of Bitcoin funds. This development has already driven up the value of ether, Ethereum’s native cryptocurrency.
Experts predict that Ethereum ETFs could attract net inflows ranging from $1 billion to $3 billion throughout the remainder of 2024. However, capturing a 20% share of the market held by Bitcoin ETF assets, totaling $62.5 billion, may take more time.
Some analysts are more optimistic, suggesting that net inflows into Ethereum could reach $4 billion. Ultimately, the final figures will depend on the SEC’s decision and the official registration process.
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