According to a report by Cointelegraph, Eric Balchunas, senior ETF analyst at Bloomberg, told the media that a potential U.S. Ether physical ETF may only serve as a “sidekick” to the Bitcoin physical ETF.
Eric Balchunas stated that the inflows generated by an Ether physical ETF may disappoint many when compared to the record-breaking inflows of the Bitcoin ETF. He explained that while Bitcoin’s value proposition as “digital gold” is relatively easy to understand, Ethereum and its broader decentralized finance (DeFi) ecosystem are more akin to tech stocks, making it harder for traditional retail investors to grasp.
Data from Dune shows that the U.S. physical Bitcoin ETF accumulated over $701 million worth of Bitcoin in its first week of trading, a milestone that may be challenging for an Ether physical ETF to achieve.
However, Ophelia Snyder, co-founder of 21Shares, still believes that the launch of an Ethereum ETF will perform well in terms of fund inflows. She told Cointelegraph that investors should adjust their expectations considering the significantly higher than usual fund inflows seen with the Bitcoin ETF launch.
