Spot ETH ETF Trading Volume Will Be '1/10th' of Spot BTC ETF, Says Analyst

IconCryptoNewsTerminal Staff29 May, 2024

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Spot ETH ETF Trading Volume Will Be '1/10th' of Spot BTC ETF, Says Analyst

Bloomberg ETF analyst Eric Balchunas believes that a spot Ether (ETH) exchange-traded fund (ETF), if launched in the US, will have low trading volume. Speaking at CoinTelegraph's X-Space online conference, Balchunas predicted that the trading volume of a spot ETH ETF would be "one-tenth of what we saw when the spot Bitcoin ETF launched." He elaborated, "one-tenth might be a little bit aggressive, one-fifth might be a better way to look at it, so if it does one-fifth the volume that we saw with the Bitcoin futures ETF on day one, that will be considered a success." Balchunas also noted that there could be an interesting dynamic where traders short the ETF while going long on spot ETH, since spot ETH can be staked.

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