As a researcher with extensive experience in the crypto market, I share Samson Mow’s skepticism regarding the potential impact of Ethereum-based ETFs on Ethereum’s price performance. While some may view the upcoming approvals as bullish, I believe that they will likely underperform compared to Bitcoin ETFs due to several key differences.
With the crypto community keeping a close eye on the US Securities and Exchange Commission (SEC) for its verdict on Ethereum spot Exchange Traded Funds (ETFs), Samson Mow, CEO of Bitcoin adoption firm JAN3, has expressed doubt regarding the prospective success of Ethereum ETFs compared to those based on Bitcoin.
This person believes that the upcoming approval of these Ethereum funds may not be a good sign for Ethereum’s price, as he anticipates that their performance will significantly trail behind that of Bitcoin ETFs.
Mow’s Call: Why Ethereum Holders Shoud Probably Cash Out Now
Exploring further the views of Bitcoin advocates like Mow, he proposes that Ethereum investors might have their final chance to cash out their Ethereum at a profitable rate compared to Bitcoin during this time.
I’ve identified two key factors behind my current perspective on Ethereum: the absence of staking rewards and the reduced market demand. In my analysis, “This represents the last opportunity for me to sell Ethereum at a price higher than 0.05 Bitcoins.”
“Approval of Ethereum spot ETFs doesn’t equate to bullishness due to their expected underperformance versus Bitcoin ETFs. Consider the demand dynamics in markets where both exist, as well as the absence of staking rewards for Ethereum ETF investors. This might be your last opportunity to sell Ethereum for more than 0.05 Bitcoins.”
— Samson Mow (@Excellion) May 22, 2024
In the comments section of Mow’s posts, which were accessible only to his followers and mentioned individuals, a user named ‘VeteranHODL’ proposed that Ethereum ETFs could lead to the “most significant sell-off this year.” Mow concurred, expressing his agreement with “many” others.
One user, Satu Madu, proposed a possibility that these Ethereum-based ETFs might draw investments away from potential Bitcoin ETFs. However, Mow disagreed with this idea, explaining that there hasn’t been substantial Ethereum hoarding by major institutional investors such as MicroStrategy yet.
Doubt it. Show me a $MSTR accumulating Ethereum seriously.
— Samson Mow (@Excellion) May 23, 2024
Currently, Ethereum is experiencing robust market growth. In just a week, its value has surged by nearly 30%, while in the previous 24 hours, it gained an additional 2.9% to reach a price of $3,792. This upward trend follows heightened anticipation and financial enthusiasm surrounding the SEC’s upcoming decision regarding Ethereum spot ETFs.
Insights Into Bitcoin Spot ETFs
On the opposing end of the crypto ETF scene, there has been a surge in investments towards Bitcoin spot ETFs. This trend underscores robust investor demand, as evidenced by SoSoValue’s data revealing a record $154 million in net inflows on May 22, representing the eighth consecutive day of positive inflows.
Out of all the Bitcoin spot ETFs, BlackRock’s IBIT experienced the largest inflow of funds for the day at approximately $91.95 million, increasing its total assets under management to around $16.08 billion. Fidelity’s FBTC also demonstrated robust growth with a daily net influx of roughly $74.57 million, which raised its total assets to about $8.65 billion.
Instead of “In contrast,” you could say “However, Grayscale’s GBTC saw a net withdrawal of $16.09 million, adding to its previous total of $17.63 billion in outflows, signaling a contrasting investor attitude within the sector.”
The combined value of assets in Bitcoin spot Exchange-Traded Funds (ETFs) has hit $59.20 billion. Their net asset ratio amounts to 4.33%. The total net inflow into these funds now reaches $13.33 billion, indicating increasing trust and continuous demand for Bitcoin via these investment channels.
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2024-05-23 19:12