VanEck Analyst Claims Hedge Funds are FrontRunning Ethereum ETF Approvals
Financial institutions are currently preparing for the launch of a spot Ethereum (ETH) exchange-traded fund (ETF), as indicated by a VanEck analyst. Matthew Sigel, head of digital assets research at VanEck, suggests that hedge funds are anticipating the approval of ETH ETFs in the US. Sigel points to data from K33 Research showing a significant increase in inflows to Ether exchange-traded products (ETPs) in markets outside of the United States.
According to Sigel, hedge funds are getting ahead of the game with ETH ETF approvals, as ETH availability on exchanges is at a near all-time low and the fundamentals are looking up. He even humorously mentions the possibility of eating a BBQ HODL hat by July 4th to emphasize his confidence in this trend.
Sigel also presents a chart from blockchain analytics firm CryptoQuant indicating a decrease in ETH supply on exchanges, hinting at a strategic accumulation of Ethereum by major players in the industry.
In a recent discussion on the Bankless podcast, Sigel describes how VanEck views Ethereum as an “open source App Store,” highlighting the potential for an ETH ETF to outperform Bitcoin ETFs in the future. He emphasizes the importance of educating traditional financial market participants about the significance of Ethereum as an income-producing asset with vast potential.
Sigel explains that Ethereum provides a platform for anyone to create their storefront on the network, offering lower fees compared to established tech giants. He believes Ethereum operates like an open-source App Store with integrated payment functionality, showcasing the mechanics of the network’s profit and loss statement.
To stay updated on the latest cryptocurrency news, subscribe to receive email alerts directly into your inbox. Remember to conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets, as all transfers and trades are at your own risk. The Daily Hodl does not provide investment advice and is not responsible for any losses incurred. Please exercise caution and seek professional advice when dealing with cryptocurrencies or digital assets.