Bloomberg analyst Eric Balchunas stated in a media interview that the inflow of the upcoming Ethereum spot ETF may be disappointing compared to the record-breaking inflow of Bitcoin spot ETF, as its concept is more inclined towards technology stocks, which traditional financial investors may find difficult to understand.
After the U.S. Securities and Exchange Commission (SEC) approved the 19-4 rule change filing for 8 Ethereum spot ETFs on May 24, many analysts predicted that the Ethereum spot ETF would be listed within the next two weeks.
Bloomberg analyst James Seyffart predicted that the Ethereum spot ETF may be listed later next week or during the week of July 15.
Bloomberg analyst Eric Balchunas revised his previous prediction of July 2 for the listing date to July 8 or later.
Reuters cited insider sources stating that the SEC may approve the Ethereum spot ETF as early as this week.
The sluggish market has led all investors to hope that the listing of the Ethereum spot ETF can attract more funds, but Bloomberg analyst Eric Balchunas recently poured cold water on this expectation.
Bloomberg analyst: Ethereum spot ETF can only follow the Bitcoin spot ETF
In an exclusive interview with Cointelegraph, Balchunas stated that the inflow of funds generated by the upcoming Ethereum spot ETF may be disappointing compared to the record-breaking inflow of the Bitcoin spot ETF.
Balchunas further explained that the value proposition of Bitcoin as “digital gold” is relatively easy to understand, but Ethereum and the broader decentralized finance (DeFi) ecosystem are more similar to technology stocks, making it more difficult for traditional financial investors to understand.
The market generally has a pessimistic view of the performance of the Ethereum spot ETF after listing.
In addition, many analysts and institutions believe that the performance of the Ethereum spot ETF after listing may be disappointing.
ETF analyst Bryan Armour from Morningstar pointed out that the inflow of funds when the Ethereum spot ETF is launched may be more moderate compared to the Bitcoin spot ETF, as the two have different historical backgrounds.
Andrew Kang, co-founder of Mechanism Capital, also expressed a conservative view on the impact of the Ethereum ETF, estimating that the market flow of the Ethereum spot ETF would be about 15% of Bitcoin. He believes that the potential upside of ETH after the spot ETF is limited and personally predicts that the price will fall to between $2,400 and $3,000.
Furthermore, regarding the cancellation of the pledge plan by multiple issuers when submitting the Ethereum spot ETF application, cryptocurrency derivatives trader Gordon Grant stated that this move would reduce the attractiveness to institutional investors.
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