- Ethereum ETFs face lower demand due to a distinct investor base and institutional hesitance.
- Bitcoin’s structural advantages, like institutional backing, may not translate to Ethereum.
- Lower open interest on CME suggests less TradFi engagement with ETH compared to BTC.
While Bitcoin ETFs have seen significant inflows, the potential impact of Ethereum ETFs remains uncertain, with analysts predicting lower demand due to Ethereum’s unique investor base and weaker institutional interest.
As highlighted by analyst Andrew Kang, while Bitcoin ETFs have accumulated $50 billion in Assets Under Management (AUM), the true net inflows are approximately $5 billion after accounting for delta-neutral flows and spot rotation.
https://t.co/On2KWjAlLx— Andrew Kang (@Rewkang) June 23, 2024
Bitcoin is increasingly viewed as a macro asset, appealing to institutions like macro funds, pensions, and sovereign wealth funds. Ethereum, in contrast, is more of a tech asset, attracting venture capitalists, crypto funds, technologists, and retail investors with easier access to crypto. This fundamental difference affects the potential inflows and impact of an ETH ETF.
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