Bloomberg analyst Eric Balchunas stated in a media interview that the anticipated inflow of an Ethereum spot ETF, set to be launched, may disappoint compared to the record inflows seen with Bitcoin spot ETFs. This is due to Ethereum’s ecosystem concept leaning towards tech stocks, which traditional financial investors find challenging to grasp.
The U.S. Securities and Exchange Commission approved 8 Ethereum spot ETFs’ 19-4 rule change filings on May 24th. Many analysts predict that Ethereum spot ETFs will be listed within the next two weeks:
Bloomberg analyst James Seyffart forecasts that the Ethereum spot ETF might debut later next week or during the week of July 15th.
Bloomberg analyst Eric Balchunas has adjusted his previous prediction of a July 2nd launch to a later date, now set for after July 8th.
Reuters reported, citing insider sources, that the SEC could potentially approve an Ethereum spot ETF as early as this week.
The sluggish market has led all investors to anticipate the Ethereum spot ETF’s listing as a means of attracting more capital. However, Bloomberg analyst Eric Balchunas recently poured cold water on these expectations.
Balchunas expressed in an exclusive interview with Cointelegraph that the potential capital inflow from the upcoming Ethereum spot ETF might be underwhelming compared to the record inflows seen with Bitcoin spot ETFs. He elaborated that while Bitcoin’s value proposition as “digital gold” is relatively easy to understand, Ethereum and the broader decentralized finance (DeFi) ecosystem resemble tech stocks, making them more challenging for traditional financial investors to comprehend.
The market sentiment generally leans towards a pessimistic view on the performance of the Ethereum spot ETF when it launches. Various analysts and institutions have indicated that the debut of the Ethereum spot ETF might fall short. Morningstar’s ETF analyst Bryan Armour pointed out that the inflow of funds upon the launch of the Ethereum spot ETF might be more moderate compared to Bitcoin spot ETFs due to differing historical contexts between the two assets. Andrew Kang, co-founder of Mechanism Capital, also shared a conservative view on the impact of the Ethereum ETF, estimating the market flow of the spot ETF to be around 15% of Bitcoin’s. He believes the potential upside for ETH post ETF launch is limited, personally predicting a price decline to the range of $2,400 to $3,000.
Furthermore, in response to several issuers withdrawing their collateral plans when submitting Ethereum spot ETF applications, cryptocurrency derivatives trader Gordon Grant commented that this move could reduce its attractiveness to institutional investors.