The Block Crypto News13 minutes ago

Published on June 10, 2024 09:57 GMT+00:00edited on June 10, 2024 10:04 GMT+00:00

Spot Ethereum ETFs could capture as much as a fifth of the investment flows currently directed towards spot bitcoin exchange-traded funds (ETFs), an analyst said.

"Forecasts show that spot Ethereum ETFs could capture between 10-20% of the flows that have been going into spot bitcoin ETFs," Bitfinex head of derivatives Jag Kooner told The Block. However, Kooner said he believes a lot depends on clarification in the future regarding staking being allowed or denied by the U.S. Securities and Exchange Commission for spot Ethereum ETFs.

The Bitfinex analyst provided a historical example of how fund managers divert funds between multiple related ETFs to balance their exposure. "The launch of gold ETFs offers a historical parallel, as when new gold ETFs were introduced, they attracted …