The cryptocurrency industry has been a hot topic in mainstream media, especially with the recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). This has led to increased speculation about the potential approval of Ethereum (ETH) ETFs.
US Congressman Michael Collins has reportedly made two Ethereum purchases in the past two weeks, according to X account Insider Tracker. This comes at a time when the SEC has just approved spot Bitcoin ETFs, leading many to hope for a similar approval for Ethereum ETFs in 2024.
A crypto investor known as “DCInvestor” has expressed optimism about Ethereum’s future, stating that it “will do better and retain more value after this cycle than the vast majority of assets.” He also noted that Ethereum already has futures-based ETFs, suggesting that a spot fund could be the next step in the United States.
Other government officials have also been reported to be purchasing crypto. For instance, between May 30, 2020, and May 30, 2023, South Korean National Assembly members bought crypto worth 62.5 billion won (approx $48 million) and sold crypto worth 63.1 billion won (approx $48.6 million).
However, the performance of Ethereum Futures ETFs in October was disappointing. Nine Ethereum Futures ETFs were launched by investment firms ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares, but they attracted less than $2 million in flows. Ethereum’s price rose by approximately 4.5% to reach $1,734 the day before the launch, but fell to $1,659 on October 2, marking a 4% decline.
Crypto analyst Raoul Pal has highlighted a key difference between Bitcoin and Ethereum, stating that “Ethereum offers a broader-based technology bet and yields that Bitcoin does not.” This is important for institutional investors who are not just looking for price appreciation but also additional benefits. Pal suggested that if Ethereum ETFs do not offer staking yields, institutions may prefer to own Ethereum directly, as this allows them to stake it and generate yields, an option generally unavailable through ETFs.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇦🇺 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | DCInvestor, Raoul Pal, Michael Collins |
| Companies | ProShares, Kelly, Volshares, X account Insider Tracker, VanEck, Bitwise, BeInCrypto, Valkyrie, United States Securities and Exchange Commission |
| Currencies | united states dollar, Bitcoin, Ethereum |
| Securities | None |
