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Ether ETFs: A New Dawn for Ethereum Investors in 2024? 🚀🌐 2024 stands on the cusp of potentially groundbreaking developments for Ethereum and its investors, with the spotlight firmly on the anticipated approval of Ether (ETH) Exchange-Traded Funds (ETFs). The narrative around Ethereum remains robust, bolstered by its pivotal role in the DeFi and NFT arenas, suggesting a strong case for Ether's inclusion in diversified crypto portfolios despite its previous underperformance compared to Bitcoin. The pathway for spot Ether ETFs appears increasingly promising following the approval of multiple spot Bitcoin ETFs. Analysts posit a 70% likelihood of Ether ETF approvals by May 2024, buoyed by the Securities and Exchange Commission's (SEC) prior nod to Ethereum futures ETFs, indirectly endorsing Ether as a commodity. This tacit acknowledgment aligns with the Commodity Futures Trading Commission's (CFTC) stance and lays a favorable groundwork for Ether's ETF candidacy. However, the journey to approval is marked by regulatory prudence, with the SEC extending its decision timeline for several Ether ETF proposals to May 2024. These delays are interpreted as routine procedural steps rather than indicative of underlying concerns, providing an extended period for public commentary and ensuring that any forthcoming Ether ETFs meet comprehensive regulatory criteria. The eventual approval of Ether ETFs would signify a monumental stride towards the integration of cryptocurrencies within conventional financial frameworks. It promises to elevate Ethereum's status within the financial domain, further cementing cryptocurrencies' legitimacy and value in the global economic landscape. As decision deadlines approach for applications from leading firms, the crypto community watches with bated breath. The potential green light for Ether ETFs by the SEC would not only herald a significant victory for Ethereum but also underscore the maturing relationship between digital assets and traditional financial systems. #Ethereum #EtherETF #CryptoInvesting #SEC #BlockchainTechnology #DigitalFinance

As the crypto community awaits the SEC's decisions on Ether ETF applications, the potential for Ether ETFs underscores the maturing of the cryptocurrency market and its increasing integration with conventional financial frameworks. This milestone could pave the way for further recognition and adoption of digital assets across the global financial ecosystem. #Ethereum #ETF #Crypto #Regulatory

The spot Bitcoin Exchange-traded fund (ETFs) could be good news for investors who want to participate in Bitcoin investment with a fraction of its price just like other ETFs. Unlike most ETFs with a basket of equities in the funds which can lower the risks, spot Bitcoin ETFs only hold Bitcoins. Therefore, it will not diversify the risk and it is still subject to the volatility risk of holding Bitcoin. Some Bitcoin investors are however concerned that Bitcoin may not serve its authentic purpose as a digital currency which operates free of any central control or the oversight of banks or governments. Institutions who create these ETFs may serve as surveillance agents for the governments and central banks. When inflows to these ETFs increase significantly, these institutions will own more Bitcoins and eventually manipulate its prices and usage. Bitcoin is a speculative investment. It has no apparent positive or negative correlation to the stock market. Therefore, it may not serve as a diversifier which can lower the risk in an investment portfolio. At Vibrance Wealth Management, we believe investors who have faith in Bitcoin and see the potential of its future value can have about 3% to 5% in their portfolio as a satellite strategy provided they are aware of the risk and have a high risk appetite.

Martin Young features Sygnum Bank's Head of Research, Katalin Tischhauser, on the future of Ethereum spot ETFs on Cointelegraph.   Katalin Tischhauser predicts that Ethereum ETFs could hit $5-10 billion in assets under management within their first year. With the potential for significant inflows, the price of ETH might see a strong boost.  “With Ethereum’s market capitalization a third of Bitcoin’s, we expect the relative inflows to be in the 15-35% range versus Bitcoin, with a resulting forecast of $5 to $10 billion in the first year.”   Read more on: https://lnkd.in/e-nVDm7G #Ethereum #ETFs #Investment

Is Investor sentiment on Bitcoin and Ethereum ETFs shifting? Bitcoin ETFs They experienced significant outflows recently. For instance, on October 8, there was a net outflow of approximately $18.66 million from Bitcoin spot ETFs, with Fidelity's FBTC seeing an outflow of $48.82 million, while BlackRock's IBIT had an inflow of $39.57 million. However, over a slightly longer term, Bitcoin ETFs have seen cumulative inflows since their approval in January 2024, totaling around $17 billion, indicating a generally positive trend that has seen some volatility with recent outflows. Ethereum ETFs: It has shown mixed signals. Initially, after their approval in July 2024, they experienced a cumulative outflow of about $2.8 billion. However, more recent data, particularly around October 10, indicated a net inflow of $3.06 million, suggesting a growing interest or at least stabilization of outflows compared to previous data points which showed outflows, like $8.19 million on October 8. This snapshot reflects Investor sentiment where Bitcoin might be facing a cooling-off period or profit-taking after a robust start to the year, while Ethereum, despite initial outflows, shows signs of regaining investor interest, possibly due to developments or anticipation around Ethereum's technology or market position. However, these trends are subject to rapid changes based on market sentiment, regulatory news, or broader economic factors. The contrasting flows between Bitcoin and Ethereum ETFs could hint at a shifting investor preference, where Ethereum might be seen as offering different technological or investment opportunities compared to Bitcoin.

Are the bitcoin ETFs behind the rally to $50K? Net inflows into the newly approve Bitcoin ETFs have hit ~$3bn. That's about $10bn of inflows into the 9 newly launched ETFs offset by ~$7bn of outflows from $GBTC (essentially the incumbent) that continues to charge a high 1.5% management fee. In contrast, $GLD, the largest physical gold ETF took 2 years to see $3bn of net inflows, according to Bloomberg's Eric Balchunas. It's quite possible these launches will alter the current cycle. In each of the past cycles, bitcoin had a 30-50% mid-cycle pullback. Now that bitcoin is wrapped in the consumer friendly ETF wrapper, steady inflows may lead to a less severe pullback. The unsustainable trajectory of US and OECD debt levels could also help. Economies just can't handle high rates because of debt levels. Gold's historically strong negative correlation to rising real yields (inflation adjusted interest rates) has broken over the past two years. Gold has been steady despite sharply higher real yields. Western investors, who are familiar with the correlation, pulled ~8% out of #gold ETFs in 2023, but global Central Banks were notable buyers. This trend has continued in 2024 with with $GLD seeing a $2.4bn YTD net outflows (quite the contrast to bitcoin!), yet gold remain steady. A break higher in gold will be the most robust data point that markets are starting to see through the debt binge the world has been on. Gold is widely accepted by the institutional investment community and is not impacted by structural adoption impact on bitcoin. The path of least resistance is continued monetary stimulus and liquidity as we use debt to support global growth. #bitcoin #bitcoinetf #debtspiral #moneystimulus #liquidity #moneyprinting https://lnkd.in/e9BnwVMa

The spot Bitcoin Exchange-traded fund (ETFs) could be good news for investors who want to participate in Bitcoin investment with a fraction of its price just like other ETFs. Unlike most ETFs with a basket of equities in the funds which can lower the risks, spot Bitcoin ETFs only hold Bitcoins. Therefore, it will not diversify the risk and it is still subject to the volatility risk of holding Bitcoin. Some Bitcoin investors are however concerned that Bitcoin may not serve its authentic purpose as a digital currency which operates free of any central control or the oversight of banks or governments. Institutions who create these ETFs may serve as surveillance agents for the governments and central banks. When inflows to these ETFs increase significantly, these institutions will own more Bitcoins and eventually manipulate its prices and usage. Bitcoin is a speculative investment. It has no apparent positive or negative correlation to the stock market. Therefore, it may not serve as a diversifier which can lower the risk in an investment portfolio. At Vibrance Wealth Management, we believe investors who have faith in Bitcoin and see the potential of its future value can have about 3% to 5% in their portfolio as a satellite strategy provided they are aware of the risk and have a high risk appetite.

𝗨𝗦 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗘𝗧𝗙𝘀: A Beacon of Resilience Amid Market Turbulence 📊 Witnessing the second-highest daily inflows, US Ethereum ETFs are carving out a unique narrative in the face of global market volatility. This surge in investment is a resonating testament to the resilience and potential of the Ethereum ecosystem. The high liquidity during downturns signals enduring investor confidence and increasing demand. It also underscores Ethereum ETFs' pivotal role in navigating choppy market conditions, spotlighting their growing acceptance as mainstream investment vehicles. Amid an evolving financial landscape, the spike in Ethereum ETFs serves as a timely reminder of the opportunities and shifts in traditional investment portfolios. Keep a watchful eye on these trends as Ethereum continues to gain traction!

Bitcoin Spot ETF Applicants Strategically Lower Fees Again The landscape of Bitcoin exchange-traded funds (ETFs) is witnessing a dynamic shift as applicants, in a strategic move, are making last-minute amendments to lower their fees. This calculated adjustment aims not only to attract investors but also to navigate the evolving crypto investment space more competitively. Let's delve into the recent fee reductions by prominent ETF applicants, each aiming to enhance their appeal in the market. Invesco US and Galaxy: In a noteworthy move, Invesco and Galaxy are slashing their fees from 0.59% to 0.39%, while retaining a 6-month waiver and the first $5 billion in assets. WisdomTree Asset Management WisdomTree is not far behind in the race, having recently cut its fee from 0.50% to 0.30%. Valkyrie ValkyrieFund has joined the fray, lowering its Bitcoin ETF fee to 0.49%. Bitwise Asset Management In a bold move, Bitwise is pushing the boundaries by lowering its Bitcoin ETF fee to an impressive 0.20%. Also retains 6 months fee waiver / $1 Billion in assets. The recent wave of fee reductions among Bitcoin spot ETF applicants signifies a strategic response to the ever-changing dynamics of the cryptocurrency market. Invesco, Galaxy, WisdomTree, ValkyrieFund, and Bitwise are positioning themselves not only as pioneers in the Bitcoin ETF space but also as entities attuned to investor needs. As the competition intensifies, these strategic fee adjustments are poised to redefine the expectations and standards within the cryptocurrency investment sphere. Investors can now anticipate a more cost-effective and competitive landscape as these key players continue to shape the future of Bitcoin spot ETFs. #bitcoin #bitcoinetf #valkyrie #etf #invesco #galaxy #bitwise image source: ETF database

ETH and BTC valuation metrics are NOT the same Today I thought it was pertinent to bring this up. Since we might get an ETH spot ETF approved this week, I have to address the differences. When the BTC ETFs were approved, we talked about the value of BTC, and the way it affects the ETF price. Remember, bitcoin has a lifetime supply of 21 million. Set in code And we know the issuance policy - 450 per day (as of today) So, much of the valuation is around the limited supply Which is juxtaposed with inflation, and with increased demand from the ETFs, developing world use cases, etc. ETH is a different animal First, ETH is used as a utility You have to pay in ETH to make transactions on the Ethereum network go So if you think there will be an increased demand for transactions on the network: - Tokenized funds - Stablecoins - Developing nations - Decentralized social media Demand for ETH should increase as well The issuance policy is different as well There is new ETH issued with every block - about every 12-13 seconds. This goes to pay the validators who are processing the transactions and securing the network However, with each block there is some ETH burned The amount burned is a function of the number and complexity of transactions. More transactions --> more burn So, every 12-13 seconds we could have more ETH, or less ETH, than we had before. There really isn't a way to know in any given day. ETH isn't as much a store-of-value asset like bitcoin. It's more of an investment in the future of the technology. Much like an early investment in Amazon or Apple I laid out some investment theses for each, linked in the comments. I also highly recommend following Michael Nadeau and his Ethereum Investment Framework, to see some traditional valuation theses for ETH. ETH currently has about 1/3 the market cap of BTC, so if it gets 1/2 the investment that the BTC ETFs got, the price should increase even more. But we don't really know what will happen. About the only thing BTC and ETH have in common is they have a similar technology securing and progressing the network And they're commonly grouped together as "crypto" When looking into investing in the ETFs (if the ETH ETFs get approved), it would be good to understand what can drive the price of the underlying assets So you know where it fits in a portfolio