Global investment firm VanEck, whose spot Bitcoin exchange-traded fund (ETF) has recently seen its trading volume surge, has revealed it sees a bright future for spot Ether ETFs.
VanEck Portfolio Manager, Pranav Kanade, noted that he believes “the market size for a spot ETH ETF is potentially as big if not bigger than the spot bitcoin ETFs.” Spot Bitcoin ETFs have been extremely successful, generating over $10 billion of net inflows in about two months.
Kanade highlighted there’s vast interest among investors in assets that produce cash flow, and ETH stands out because it generates fees that benefit its holders. While an ETF might not include staking options, he said, ETH remains a revenue-generating asset, which could make ETH more appealing to a broader audience than Bitcoin.
Unlike Bitcoin, which utilizes a Proof of Work consensus mechanism, Ethereum relies on Proof of Stake, which allows ETH holders to earn by “staking” their tokens, essentially validating transactions on the blockchain. Platforms like Coinbase and Kraken facilitate on-chain staking for their users.
The odds of spot Ether ETFs being approved have recently been lowered, however, with Bloomberg analysts setting their chance of approval at 30%.