Can altcoin ETFs escape the pitfalls of Ethereum? First, take a look at these three fatal reefs
1. Fee Assassin: The bloody lessons of Grayscale ETHE
2.5% annual fee vs. BlackRock 0.25% — when buying Ethereum the same way, the former's returns can be eaten away by fees after five years. If altcoin ETFs dare to collect an "intelligence tax," retail investors will definitely vote with their feet.
2. Confused Persona: Bitcoin is a sword, Ethereum is a Swiss Army knife
Bitcoin's reputation as "digital gold" reigns supreme, while Ethereum has to be the big brother of DeFi, the leader of NFTs, and also double as a staking yield generator. Financial advisors have to wear out their tongues recommending it, leaving retail investors in a fog: am I buying a tech stock or a bond?
3. Staking Seal: The tight leash the SEC has put on Ethereum
With a wave of its regulatory hand, all staking rewards in the ETF are castrated. Over here, Ethereum ETFs are left wide-eyed, while over there, TRON (TRX) is secretly applying for a staking ETF — the dealer's plan is loud and clear: as long as the regulators leave a crack, I can turn interest into a massive hit!
Knowing there are tigers in the mountains, why still barge in?
The dealer knows the score: latch onto the ETF concept, and first pump the token by three times! Approval is a compliance milestone, while rejection is a "regulatory suppression tragedy narrative." Either way, it's all about traffic, and the sickle has long been sharpened to a shine.
