Briefly:
•The lack of excitement about Ethereum compared to Bitcoin ETFs may be due to factors such as market cycles, investor understanding, and unique attributes.
• Raoul Pal, CEO of Real Vision, said that institutional investors may be more inclined to hold Ethereum directly to obtain the income of proof of stake, rather than choose ETFs.
• Technical analyst Peter Brandt is pessimistic about Ethereum, predicting the possibility of a price correction to $1,000.
In the cryptocurrency market, Bitcoin ETFs (exchange-traded funds) have made a huge splash. However, there doesn’t seem to be that much excitement in the market for Ethereum, the second-largest cryptocurrency by market capitalization.
According to industry leaders, factors such as Ethereum’s own market dynamics, investor understanding, and its unique attributes may be to blame.
Institutional Interest in Ethereum ETFs
Raoul Pal, CEO of Real Vision, highlighted a key difference between Bitcoin and Ethereum. He noted that “Ethereum offers a wider range of technology bets and benefits that Bitcoin does not have.” This distinction is critical for institutional investors who are looking not only for price increases but also for additional benefits.
Pal believes that if the Ethereum ETF does not provide the benefits of proof of stake, institutions may be more willing to hold Ethereum directly. This is because holding the asset allows them to participate in proof-of-stake and earn returns, which is not typically available in ETFs.
For example, at Coinbase, Ethereum holders can currently earn an annual return of 3.46% a year. Currently, Ethereum’s proof-of-stake ratio, which reflects the proportion of eligible tokens actively participating in proof-of-stake, is 23.32%.
As a result, the concept of an Ethereum ETF may become less attractive to institutional investors, who may value direct ownership interests more. Pal raised concerns about the possibility that asset managers could take advantage of the benefits of proof-of-stake but not pass those benefits on to ETF holders. This situation could lead to a lack of institutional interest in Ethereum ETFs.
Pal said, “Many institutions prefer to hold ETH itself because then they can participate in the proof of stake and earn income. If you don’t give them income, some asset managers who launch ETFs will become very rich. For example, Black Rock The group will make all the money because they will receive the proof-of-stake yield on ETH and not give it to ETF holders."
ETH Price Prediction: Corrections Possible
On the other hand, veteran trader Peter Brandt has a pessimistic view on Ethereum. As a swing trader, he is more concerned with short-term speculative nature than long-term investing.
According to Brandt, ETH is trading within a wedge chart, which could soon lead to a pullback to $1,000 or even $650.
“I’m still leaning short on ETH. I’m a swing trader of ETH, not a holder. I think there’s a lack of fundamental support inside the chart. If I were short at $2,100, it wouldn’t be a big deal to me if I was wrong. ," Brandt said.
Although both Bitcoin and Ethereum are leading cryptocurrencies, they attract investors for different reasons. Bitcoin is often viewed as “digital gold,” a store of value, while Ethereum is viewed as a platform for building decentralized applications and smart contracts.
This fundamental difference affects how each cryptocurrency’s ETF may be perceived and utilized by different investor classes, as well as the impact it may have on the price of ETH. #以太坊ETF #机构需求
