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Although Ethereum has outperformed Bitcoin in returns since the beginning of the year, investors still seem optimistic about its ETFs.
While trading in Ethereum ETFs (Exchange Traded Funds) Not yet started, Bloomberg Reports Investors are already showing “bearish” sentiment towards the second-largest cryptocurrency, according to Fundstrat’s head of digital asset strategy, Sean Farrell.
In a note, Farrell highlighted that despite the negative sentiment, hedge funds could still provide a significant boost to these funds by taking advantage of fundamental trading opportunities — the discrepancy between spot and futures markets. Fundstrat Global and Galaxy Digital predict that Ethereum ETFs could attract $5 billion in net inflows over the first five months, though Galaxy Digital warns that the lack of ETF participation could weigh on demand.
Despite the bearish outlook, the approval of Ethereum spot ETFs could mark a pivotal milestone for the broader crypto industry as VanEck recently announced. pointed out It intends to launch another exchange-traded fund, this time Solana.
Analysts at GSR Markets, one of the oldest cryptocurrency market makers, project The introduction of Ethereum ETFs could pave the way for more top 100 cryptocurrencies to enter traditional markets. Based on decentralization and demand, GSR Markets expects that once Solana receives approval for its ETF, investment firms will likely submit applications for spot ETFs for NEAR Protocol (NEAR), Avalanche (AVAX), and Aptos (APT). , and others.
However, it is not yet clear what timeline the US Securities and Exchange Commission will take to approve these filings. Reuters quoted its own sources as saying: Reports The SEC could approve Ethereum ETFs as soon as July 4. Meanwhile, Eric Balchunas, Bloomberg’s chief ETF analyst, said: Clear Solana ETFs are unlikely to be approved before 2025.
Since the beginning of the year, Ethereum’s price has risen by nearly 51%, outpacing Bitcoin by 6% and Solana by 13%, according to data from MarketWatch.
