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Spot Ethereum ETFs Expected to Attract Substantial Investment Flows

Spot Ethereum ETFs Expected to Attract Substantial Investment Flows

Spot Ethereum ETFs are anticipated to capture a significant portion of the investment inflows currently directed towards spot Bitcoin ETFs, according to insights shared by Bitfinex's head of derivatives, Jag Kooner.

He suggests that these ETFs could attract between 10-20% of the flows typically seen in spot Bitcoin ETFs. However, Kooner underscores the importance of future clarification from regulatory authorities, particularly the U.S. Securities and Exchange Commission (SEC), regarding the permissibility of staking in spot Ethereum ETFs.

Drawing parallels from historical examples, Kooner highlights how the introduction of gold ETFs in the past influenced investment allocations, potentially impacting existing financial products related to gold. Similarly, the advent of Ethereum ETFs could prompt fund managers to adjust their portfolios to balance exposure between Bitcoin and Ethereum.

READ MORE: Ethereum’s Potential: VanEck Forecasts Five-Figure Prices by 2030

Furthermore, Kooner illustrates how fund managers historically diversified their ETF portfolios to manage risk and potentially boost returns. He cites the introduction of gold spot ETFs in 2004 and the subsequent introduction of silver ETFs in 2006 as examples, where investors redirected funds to capitalize on the growing demand for silver, especially in industrial applications.


Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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