Ethereum Spot ETF Fails to Impress Market: Here's Why
CryptoNewsTerminal Staff24 May, 2024
Ethereum Spot ETF Fails to Impress Market: Here's Why
According to crypto analyst Noelle Acheson, the long-anticipated Ethereum spot ETF may not meet expectations even if it gets the green light from the SEC. Acheson observes that "institutional interest in an ETH spot ETF is far lower than it was for a Bitcoin ETF." In Hong Kong, for example, where spot ETFs for both Bitcoin and Ethereum were approved last month, the Ethereum ETF has garnered less than 15% of the total AUM of all crypto spot ETFs listed in the city. Additionally, U.S. investors already have access to ETH exposure through futures ETFs on the CME, but open interest has been significantly lower compared to their Bitcoin counterparts. The largest Ethereum futures ETF (EETH) has approximately 4% of the AUM of the largest Bitcoin futures ETF (BITO). These factors suggest that the market response to an Ethereum spot ETF in the U.S. may be lukewarm at best.
