The second trading day for spot Ethereum exchange-traded funds (ETFs) saw a similar trading volume of $1 billion, but experienced a significant $133 million outflow, while spot Bitcoin ETFs saw inflows of $44 million.
Despite the short-term setback, ETF analysts remain bullish on spot ETH ETFs, calling their approval a turning point for the crypto industry.
As highlighted in a post on social media platform X (previously known as Twitter) by Nate Geraci, the President of ETF Store, ETF analysts and industry leaders are bullish on spot ETH ETFs.
“What these ETFs do is open up bridges b/w Ethereum & traditional financial markets.” –@JSeyff
“Serves as further proof of crypto’s broader momentum & adoption.” –@Fede_Brokate
100% agree & I offer some addn’l color here as well.
via @Lawrence_Carrel https://t.co/6qIOJ5wT5G pic.twitter.com/2qcGfhCc8S
— Nate Geraci (@NateGeraci) July 25, 2024
Meanwhile, the data from SoSoValue indicates that the Grayscale Ethereum Trust (ETHE) has witnessed outflows worth more than $800 million.
James Seyffart, an ETF analyst at Bloomberg, emphasizes that spot ETH ETFs are building bridges between Ethereum and traditional financial markets, providing easier access for investors who have been curious about the digital asset but were previously hesitant due to regulatory concerns, a lack of knowledge regarding cryptocurrency custody, or the complexities of fiat-to-crypto platforms.
Federico Brokate, the head of US business at 21Shares, stated that the approval of spot ETH ETFs by the United States Securities and Exchange Commission serves as a “further proof of crypto’s broader momentum & adoption,” marking a critical inflection point for the crypto space. He further added:
“It represents further comfortability with the asset class from the SEC and serves as further proof of crypto’s broader momentum and adoption.”
Ric Edelman, the founder of the Digital Assets Council of Financial Professionals, told Forbers in an interview that while Bitcoin functions as a store of value, Ethereum operates like an escrow account without human interference. As a result, both the digital assets have different purposes and their ETFs target different audiences.
As per CoinMarketCap data, Bitcoin is trading at around $64,000 while Ether is trading at $3,100 price level.
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