ETH Spot ETF: Demand May Fall Short of Expectations, Wintermute Predicts

IconCryptoNewsTerminal Staff22 Jul, 2024

cryptonews.jpg

ETH Spot ETF: Demand May Fall Short of Expectations, Wintermute Predicts

Despite the anticipation surrounding the upcoming ETH spot ETF, a recent report by cryptocurrency market maker Wintermute suggests that demand may be lower than expected. The report projects fund inflows for the ETF to be in the range of $4.8-$6.4 billion, but predicts actual demand to fall short within a range of $3.2-$4 billion. This would represent only 15-20% of the fund flows witnessed in the Bitcoin spot ETF. Wintermute attributes this potential shortfall to the lack of staking options and a compelling investment narrative for ETH. Unlike Bitcoin, which has established itself as a store of value similar to gold, ETH may struggle to articulate a clear investment thesis to attract investors.

Related News