dYdX CEO Optimistic of First Ether Staking ETF in EU Markets
dYdX Foundation chief predicts the European markets could pip the US to the first staked exchange-traded fund (ETF).
The adoption of crypto is to witness a significant move, with the European markets projected to usher in the first Ether-staking ETF. dYdX Foundation chief executive (CEO) Charles d’Haussy anticipates the crypto industry could witness the first ETF based on ETH staking.
d’Haussy address at the EthCC considers the next significant milestone towards crypto ETF adoption is Ether staking ETF debut in the EU. The executive finds the US ill-prepared and trailing the European market, hence likely to present a pathway for Ethereum staking ETFs.
ETFs can bring significant inflows for the benefit of the underlying crypto asset, thus significantly contributing to fuel price appreciation. For Bitcoin, ETFs accounted for nearly three-quarters of new investment in the world’s largest crypto by mid-February as it surged above the $50,000 mark.
d’Haussy is bullish on the upcoming Ether ETF, whether staked or staking ETH ETFs that could yield different implications. Such aligns with a recent prediction by Bybit institution head Eugene Cheung, with institutional investor confidence stronger in ETH’s price than retail investors.
The recent report by Cheung indicates that the bullish stance of institutional investors on ETH is evident in doubling their ETH exposure than retail investors. The bullish view emerged shortly after the US Securities and Exchange Commission (SEC) approved 194-bs.
Cheung reports that the bullish view among institutional investors surged from 6.54% to 14.29%. Simultaneously, the retail investors allocation increased from 7.4% to 9.52%. The latter shows a cautious, optimistic sentiment by retail investors towards ETH price.
Spot Ether ETFs Listing “Imminent”
d’Haussy acknowledges the crypto industry eagerly awaits the launch of the initial spot for Ether ETFs soon. The Bybit executive projects the spot ETH ETFs debut as imminent and likely next week.
d’Haussy considers the wait for spot Ether ETF launch is edging closer to its end. The executive considers the industry cannot wait any longer and that the spot ETF should launch in weeks.
A review of the prospective ETher ETF issuers reveals that Grayscale ranks the lowest waiver fee of 0.15%. Bloomberg ETF analyst James Seyffart indicates Franklin Ethereum (EZET) offers the second least, with Invesco Galaxy Ethereum ETF (QETH) offering 0.25%. Notably, the majority identify Coinbase as the custodian.
Ether ETF to Capture Quarter Bitcoin ETF AUM
Investors fear spot Ether ETFs could feature disappointment in the inflows despite the growing optimism on their debut. Nonetheless, dYdX’s d’Haussy projects spot Ether ETFs will net nearly 25% of the assets under management (AUM) that the spot Bitcoin ETFs currently have.
d’Haussy forecasts the ETH to account for 25% of the AUM in crypto ETFs, with Bitcoin claiming three-quarters. The executive backs the prediction with a view of the smaller-size ETPs and ETFs already released within the European markets carrying such a proportion.
The US has seen the spot Bitcoin ETFs amass over $57 billion worth of the entire on-chain holdings since their unveiling on January 10, Dune data shows. Considers that spot Ether ETFs capture the projected 25% of the BTC ETF inflows, which would translate to over $14 billion in inflows in six months.
Bloomberg senior ETF analyst opines that the Ether ETFs may emerge as a “sidekick” towards the established spot BTC ETFs. Eric Blachunas considers Bitcoin to serve as the crypto hot sauce in inflows.
Balchunas indicates that Bitcoin carries along the reputation that investors know its value. It is difficult to disassociate from Bitcoin. However, Ethereum is difficult to explain and thus likely to become a sidekick to the BTC.
Bybit echoes this view and expects Ether to realize barely 30% of the historic inflows attained by Bitcoin ETFs. The institutional investors’ head consider Ether less understood and younger, thus largely unknown in terms of how the flows stack up.
Cheung considers the long-term Ether ETF launch would offer regulatory certainty that evaded Ether. Such an occurrence would have the Ether future outperform Bitcoin’s price.
