European Markets Could See the Introduction of the First Ether Staking Exchange-Traded Fund (ETF)

The European markets could see the introduction of the first Ether staking exchange-traded fund (ETF), as a potentially significant move for cryptocurrency adoption.

Cryptocurrency exchange dYdX is set to launch the first Ether ( ETH ) staking ETF in Europe, in a potentially significant move for the crypto industry.

The development was shared by Charles d’Haussy, CEO of the dYdX Foundation, in an exclusive conversation with Cointelegraph at EthCC.

Speaking on the next major development on the horizon, d'Haussy highlighted the debut of the first Ether staking ETF.

ETFs can notably drive substantial inflows into the underlying crypto asset, contributing significantly to its price appreciation. In the case of Bitcoin ( BTC ), ETFs accounted for roughly 75% of the new investment in the world's largest cryptocurrency by February 15 as it surged past the $50,000 price point.

D’Haussy further expressed optimism for the next Ether ETF, whether it would be an Ether staking ETF or a staked Ether ETF, which would have different implications. He explained:

“The next question is an Ether staking ETF. I'm bullish on the next Ether ETF, whether that's an Ether staking ETF or staked Ether ETF — they have different implications.”

Related: Institutions are more bullish on Ether than retail ahead of ETH ETF launch

US spot Ether ETFs set to launch ‘any day now’

Meanwhile, the industry is eagerly awaiting the launch of the first batch of US spot Ether ETFs, which could debut as early as next week.

When asked about the debut of the first spot Ether ETFs, d'Haussy stated that it is only a matter of time:

“I think it's just a matter of time. We're seeing the filings get approved one after another. I think the next logical step is the approval of an Ether ETF, and I think we could see that any day now.”

Of all the prospective Ether ETF issuers, Grayscale's fund had the lowest waiver fee at 0.15%, according to James Seyffart, an ETF analyst at Bloomberg.

Related: Ether ETF opens the door for Solana ETFs and crypto products: Analyst

Ether ETF to garner roughly 25% of Bitcoin ETF AUM

Despite the anticipation for Ether ETFs, some investors might be concerned about the inflows they will generate. However, dYdX's d'Haussy anticipates that Ether ETFs will capture around 25% of the assets under management in the current spot Bitcoin ETFs. He stated:

“If you look at the Bitcoin ETFs, they're gathering a lot of attention, but they're also serving as a proxy for Ether because there isn't an Ether ETF yet. So I would expect that, once an Ether ETF launches, it would capture around 25% of the AUM in these Bitcoin ETFs.”

According to Dune, the US spot Bitcoin ETFs have amassed over $57.1 billion in total on-chain holdings since launching in January. If they manage to garner 25% of the inflows into Bitcoin ETFs, Ether ETFs would clock in at over $14.2 billion in the first six months.

However, in terms of inflows, the Ether ETFs might only serve as a “sidekick” to the more established spot Bitcoin ETFs, according to Eric Balchunas, senior ETF analyst at Bloomberg.

Speaking to Cointelegraph, Balchunas stated:

“It will be the sidekick to the Bitcoin ETFs, but it will be a very, very strong sidekick. I think you'll see a lot of attention go to the Ether ETFs, but I think they'll be largely overlooked by the Bitcoin ETFs.”

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