Anyone who dreamed of an Ethereum flip will be destined to be left unsatisfied. It will only be Bitcoin’s follower even for ETFs.
Arrival from Fidelity in competition from Ethereum Spot ETF formalizes a new battleground between fund managers and SEC, at least on the topic of crypto. After those Bitcoinwhich have brought several points forward but not yet approved, it is up to Ethereum to cause significant tension.
However, there is one point that became crystal clear during our latest Space on
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Ethereum ETF: Bitcoin’s Follower?
Ethereum it is certainly the most important asset in the crypto market, as it is, at least in terms statusat a sidereal distance of how much Bitcoin can arouse in the sense hype and also of interest to institutional stakeholders.
The arrival of requests for ETFs on Ethereum from traditional financial giants such as Black rock However, it should not be fooled: it is not an asset equalization, with Ethereum having, among other things, specific problems well described in the filings. It is a move whose most concrete explanation concerns the specificity of the functioning of institutional investments in the US as well as elsewhere.
Volumes on Ethereum are, at least for similar products in Europe, quite slow compared to those on Bitcoin. Just like the assets of ETNs/ETCs that focus on Ethereum in Europe are much smaller compared to those that focus on Bitcoin instead.
Why then? Black rock you should try to make a submissionorganize everything and go even obliquely in line with Ethereum? Precisely for the specific functioning of individual investments.
The idea we got in our space, also talking to experts in the sector (you can also listen to the episode on Spotify) is that in reality big managers will necessarily have to offer more products with a crypto theme, because the allocation of big investors will have to include more products from this new categories.
In other words, even if it is a mild 95/5 in the crypto world, another asset will be needed to sell certain institutions.
This must have been BlackRock’s thinking, which would generally benefit very little from Ethereum ETFs in terms of commissions, especially if the same managers who jumped into Bitcoin were to arrive – and therefore if we had to settle each is a relatively small part of the whole markets.
Friendly, but still able to make a difference
No one expects a price revolution for the eventual Ethereum ETF. The markets reacted well, but still lukewarm, to the news about submissionalso thanks to the fact that those on Bitcoin arrived much earlier.
The signal we can read is simple: he is less interested, but we also add that he could still enjoy parallel driving, however sixteenth, what will happen to Bitcoin. It is therefore not a neutral event, but it still largely depends on what will happen $BTC and its ETF. Rather, with their ETFs.