Bloomberg Analyst: Spot Ethereum ETF Demand May Reach 20% to 25% of Spot Bitcoin ETF
Bloomberg ETF analyst James Seyffart believes that the demand for spot Ethereum ETFs may reach 20% to 25% of spot Bitcoin ETFs. Seyffart expressed his position in an interview hosted by Bitwise, and added that another Bloomberg ETF analyst, Eric Balchunas, believes that demand for the new fund will reach 15% to 20%. Seyffart compared these two estimates with the fact that ETH accounts for 30% of Bitcoin's $1.4 trillion market value, calling it somewhat underestimated. He attributed this difference to certain limitations of each product. The issuer of the Ethereum ETF will not participate in staking, which means that unlike ETH holders, ETF investors cannot earn income. In addition, Ethereum has greater on-chain utility than Bitcoin, but ETF investors will not be able to access it. Seyffart said that compared with US futures ETFs, Ethereum futures ETFs account for only 12% of assets and cannot provide a "good sample" for estimation. The asset ratio of foreign market Ethereum futures ETFs is 20% to 30% of Bitcoin futures ETFs. In the end, he predicted that spot Ethereum ETFs will have "large-scale issuance", but not as much as spot Bitcoin ETFs, but the demand exists. (CryptoSlate)
Analysis: Compared with Bitcoin, Ethereum spot ETF is less likely to experience a pullback after approval
Cryptocurrency trader Matthew Hyland stated in an article on May 24th that "I believe that compared to a Bitcoin spot ETF, there is less likelihood of a sell-off with an Ethereum spot ETF (approved for listing)."
US Ethereum spot ETF approval puts pressure on South Korean regulators
After the SEC approved the Ethereum spot ETF, the South Korean regulatory agency is facing pressure from the market to approve cryptocurrency exchange-traded funds (ETFs). This decision is expected to force the Seoul financial regulatory agency to re-examine its stance on digital assets.The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) in Korea have been cautious about introducing cryptocurrency trading to traditional securities markets. According to the FSC, ETFs must strictly comply with the Capital Markets Act and can only be linked to traditional underlying assets. The Korean government updated the "Virtual Asset User Protection Law" in early February.Xangle, a major digital currency data provider in Seoul, publicly criticized the practice of traditional securities markets banning digital assets, calling it "outdated" and in need of revision. Jung Eui-jung, chairman of the Korean Shareholders Alliance, emphasized that Seoul should follow the United States in approving Bitcoin and Ethereum ETFs to reduce industry frustration. He warned that if Korea progresses slowly and the United States continues to move forward, investors may turn to the US market, and it is only a matter of time before the US fully opens its market to other cryptocurrencies.
DeFiance Capital CEO: More than 70% of spot BTC ETFs are held by retail investors
Arthur Cheong, founder and CEO of DeFiance Capital, stated on social media that over 70% of spot BTC ETFs are held by retail investors.
The number of new cryptocurrency ETFs launched in the first three months of this year was three times that of the first quarter of 2023
With the launch of new ETFs focusing on cryptocurrency strategies, speculation has returned to the market, and new funds focusing on cryptocurrency strategies are being launched at a faster pace. According to Crypto Fund Research, 25 new venture capital and hedge funds were established in the first three months of this year, the most since the second quarter of 2021. This is twice the number of funds closed during the same period, and almost three times the number of funds that appeared in the first quarter of 2023. Last year, during the bear market, the number of newly established cryptocurrency funds barely exceeded the number of closed funds.
US spot Bitcoin ETFs saw net inflows of $948.3 million this week
According to Farside Investors data, the net inflow of the US spot Bitcoin ETF reached 948.3 million US dollars this week. Among them:Net inflow of 66 million US dollars on Monday, May 13; net inflow of 100.5 million US dollars on Tuesday, May 14; net inflow of 303 million US dollars on Wednesday, May 15; net inflow of 257.3 million US dollars on Thursday, May 16; net inflow of 221.5 million US dollars on Friday, May 17.
The total assets of the top 14 ETFs exceed $3 trillion, and their performance has been worse than that of spot Bitcoin ETFs since the beginning of the year
According to HODL15Capital, the total assets under management of the top 14 ETFs exceed 3 trillion US dollars, but their performance from the beginning of the year until now has been inferior to that of spot Bitcoin ETFs (BlackRock's IBIT, Fidelity's FBTC, ARK 21Shares' ARKB, and Bitwise's BITB).
Cointime's Evening Highlights for May 24th
1. CryptoPunks Launches “Super Punk World” Digital Avatar Series
The total asset management scale of Huaxia's two virtual asset ETFs fell below the HK$1 billion mark
According to the data disclosed by the Hong Kong Stock Exchange this week, the total assets under management of two virtual asset ETFs under Huaxia Fund (Hong Kong) have fallen below HKD 1 billion. The data shows that the asset management scale of Huaxia Bitcoin ETF is HKD 872.31 million, and the asset management scale of Huaxia Ethereum ETF is HKD 109.63 million, totaling HKD 981.94 million. In addition, the Huaxia Ethereum ETF has a price of HKD 7.365, down 0.07%; while the Huaxia Bitcoin ETF has a price of HKD 8.290, up 0.61%.
US spot Bitcoin ETFs saw a net inflow of approximately $251 million yesterday
Lookonchain monitoring data shows that on May 17th, 9 US spot Bitcoin ETFs added 3,743 BTC (approximately $251.56 million). Grayscale added 397 BTC (approximately $26.7 million) and currently holds 288,895 BTC (approximately $19.42 billion). BlackRock added 1,435 BTC (approximately $96.44 million) and currently holds 276,190 BTC (approximately $18.56 billion).
