Amidst the excitement of the approval of all Ethereum ETFs by the United States Securities and Exchange Commission (SEC) a voice of warning has emerged.
Samson Mow, CEO of the Bitcoin advocacy firm Jan3, has expressed skepticism about the Ethereum-based ETFs compared to their Bitcoin counterparts. Mow Warns of Ethereum ETF Underperformance.
Read Also: Notable Crypto CEO States Why XRP, SHIB, Solana, Other Altcoins Will Crash
It should be noted that this warning emerged before the approval. He predicted that Ethereum ETFs will likely underperform compared to Bitcoin ETFs. He argues that these funds will not necessarily translate to a bullish signal for Ethereum due to several factors.
Firstly, Mow highlights the absence of staking rewards with Ethereum ETFs, unlike some Bitcoin ETFs that offer this feature. Staking allows cryptocurrency holders to earn passive income by locking up their holdings to support the network’s operations.
Secondly, Mow suggests that lower demand for Ethereum across various markets could hinder its price growth.
Based on this reasoning, he asserts that this could be the last opportunity for Ethereum holders to sell their ETH at a favorable price relative to Bitcoin. He claims this window of opportunity will close once the SEC approves Ethereum ETFs, potentially leading to a price decline for Ethereum.
While Mow’s comments are restricted to his followers, some who saw his posts echoed his sentiments. One user speculated that Ethereum ETFs could be a “sell the news event,” suggesting a price drop after the initial hype surrounding the launch. Mow supported this view, citing the lack of significant Ethereum accumulation by major institutional investors.
However, it’s important to note that Ethereum’s price performance has been positive recently, rising nearly 30% in the past week. This positive trend coincides with the speculation surrounding Ethereum ETFs.
On the other hand, Bitcoin spot ETFs have already experienced significant investment inflows, indicating strong institutional interest. Data shows a record net inflow of $154 million on May 22nd, marking the eighth consecutive day of positive inflows for Bitcoin spot ETFs.
This positive sentiment is further reflected in the net asset value of Bitcoin spot ETFs, which has reached $59.20 billion. This suggests growing confidence in Bitcoin as an investment vehicle through these exchange-traded funds.
Read Also: How SEC Interlocutory Appeal In XRP Lawsuit Could Safe Crypto, Analyst Explains
While Mow raises interesting points about differences between Ethereum and Bitcoin ETFs, the overall impact on the market remains to be seen. The strong performance of both Bitcoin and Ethereum currently suggests investor interest in both leading cryptocurrencies.
It’s not too late yet. The approval can still prove worthwhile. The approval could potentially attract new investors to the cryptocurrency space, boost the overall market, and compete with Bitcoin counterparts.
Follow us on Twitter, Facebook, Telegram, and Google News
A wallet associated with Ethereum co-founder Vitalik Buterin has recently made large ETH transfers, drawing…
The cryptocurrency market has never been free of swings in emotion as well as differences…
Grayscale recently reintroduced its XRP Trust to the market, following the Ripple and the SEC…
RCO Finance (RCOF) aims to redefine the conventional approach to crypto trading upon the completion…
Technical analysts are closely monitoring XRP, noting a significant tightening in its Bollinger Bands, which…
Grayscale Investments recently reintroduced its XRP Trust, offering accredited investors a unique opportunity to gain…