Bloomberg: Ethereum ETF may not be able to attract too much capital, and the market does not understand the potential of DeFi

After the U.S. Securities and Exchange Commission approved the 19-4 trading rule change document for 8 Ethereum spot ETFs on May 24, many analysts predict that the Ethereum spot ETF will be listed in the past two weeks:

Bloomberg Analyst James Seyffart predicts that the Ethereum spot ETF may be listed late next week or the week of July 15.

Bloomberg analyst Eric Balchunas postponed the previously predicted July 2 listing to after July 8.

Citing insider information, Reuters reported that the SEC may approve an Ethereum spot ETF as soon as this week.

The sluggish market has made all investors hope that the Ethereum spot ETF will once again attract more funds after its listing. However, Bloomberg analyst Eric Balchunas recently poured cold water on it during an interview with the media.

Bloomberg Analyst: Ethereum spot ETF can only be a follower of Bitcoin spot ETF

In an exclusive interview with Cointelegraph, Balchunas said that compared with the record inflows of Bitcoin spot ETF, the upcoming launch of Ethereum Spot ETF Generates Inflows Likely to Disappoint:

Bitcoin is like enough crypto hot sauce (thrills and importance) that you feel like that’s enough and these things (cryptocurrencies) move together anyway .

Ethereum is more difficult to explain, I think it is just a follower of Bitcoin

Balchunas then explained that Bitcoin’s value proposition as “digital gold” is relatively easy to understand, but Ethereum and the broader decentralized finance (DeFi) The ecosystem is more similar to technology stocks, which makes it more difficult for investors in traditional finance to understand.

The market is generally bearish on the listing performance of Ethereum spot ETFs

In addition, many analysts and institutions have said that the performance of Ethereum spot ETFs may be disappointing:

Morningstar ETF analyst Bryan Armor pointed out that compared with the Bitcoin spot ETF, when the Ethereum spot ETF is launched, capital inflows may be more modest because the time and space background of the two is not the same:

Bitcoin has had pent-up demand for ten years, so investment Interest in its spot ETFs is high, but the (Ethereum spot ETF) will not generate the same excitement.

Andrew Kang, co-founder of Mechanism Capital, also expressed a conservative view on the influence of Ethereum ETF, estimating that the market flow of Ethereum spot ETF is about 15% of that of Bitcoin, and believes that the potential upside of ETH after the launch of spot ETF is limited. , who personally predicts the price will fall to between $2,400 and $3,000.

In addition, in response to the cancellation of pledge plans by many issuers when submitting Ethereum spot ETF application documents, cryptocurrency derivatives trader Gordon Grant said that this move will reduce the attractiveness of the pair to institutional investors: unless pledges are supported , otherwise the Ethereum spot ETF will have limited appeal to institutional investors, and many may wait until the pledge is approved before allocating funds to the fund.

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