Fundstrat’s Head of Digital Asset Strategy, Sean Farrell, reports that sentiment around Ethereum ETFs remains bearish, despite Ethereum outperforming Bitcoin since the start of the year. Bloomberg notes that trading in spot Ethereum ETFs hasn’t begun, yet investors show skepticism.
Farrell argues that hedge funds might still boost these ETFs by exploiting basis trade opportunities. Fundstrat and Galaxy Digital predict spot Ethereum ETFs could attract $5 billion in net inflows in the first five months. However, Galaxy Digital warns that the absence of staking could affect demand.
VanEck’s intention to launch a spot ETF for Solana highlights a pivotal moment for the crypto industry. GSR Markets suggests this could lead to ETFs for other top-100 cryptocurrencies like NEAR Protocol and Avalanche.
Since the year’s start, Ethereum has surged by 51%, outpacing Bitcoin by 6%. The approval of spot Ethereum ETFs could significantly impact the broader crypto market.
