Analyst Eric Balchunas opined that the approval of Ethereum spot ETFs in the US will have a minor impact on inflows. For significant inflows, he said, a sustained rise in the price of Ether would be required.
Inflow Issues
After the launch of the ETF last year, the price of ETH has declined significantly. Unlike spot Bitcoin ETFs, which reached new highs two months after launch, Ether ETFs have failed to generate the same inflows.
Balchunas noted that it will take months of analysis and compelling data to renew investor interest. One of the main reasons for the weak inflows is the lack of a sustained rally in ETH.
Comparison with Bitcoin ETFs
The analyst noted that after the launch of the Ethereum ETFs, the price quickly went down, making it difficult to recover. Unlike Bitcoin ETFs, which hit a new all-time high two months after launch.
ETF Approval Expectations
The U.S. Securities and Exchange Commission (SEC) will allow Ethereum ETFs to offer staking after multiple requests. Analyst James Seyffarth believes that approval may come sooner, but the final deadline is the end of October.
It is important to note that every investment and trading action involves risk. Readers should conduct their own research when deciding to invest in Ethereum ETFs or any other financial instruments. Before making any investment decisions, you should carefully consider the pros and cons and possibly consult with a financial advisor.
