Eric Balchunas suggests that ETH-ETFs could raise $5 billion or more in the next 12 months

The Chicago Board Options Exchange and the New York Stock Exchange have started trading Ethereum-based ETFs. Total trading volume for the new products topped $500 million hours after the launch.

The leaders were Grayscale with $222 million and BlackRock with $117 million. As Jupiter Zheng of Hashkey Capital Liquid Fund noted, Grayscale’s high fees could be the cause of short-term market pressure.

“Some time after the launch of spot ETH-ETFs, a correction is likely. That is, outflows from Grayscale Ether Trust could worsen sentiment in the near term, as in the case of bitcoin-ETFs. Investors can direct their funds to options with lower commissions,” the expert noted.

The approval of spot exchange-traded funds based on ETH had a “restrained” impact on the crypto industry, as market participants expected the implementation of the “buy on rumors, sell on news” option, QCP Capital believes.

“As spot ETF-ETH probably had no impact on prices to begin with, combined with potential pressure from the United States authorities and Mt.Gox, quotes may remain low until election momentum picks up,” the experts said.

Bloomberg analyst Eric Balchunas believes that ETH-ETFs will be useful for the industry in any case. He suggested that the new products could raise $5 billion or more over the next few months.

“Regardless of your relationship to ETH or cryptocurrency, this is such a first-class approach to TradFi. […] Issuers [of spot funds based on the second most capitalized cryptocurrency] have over $15 trillion in total assets under management,” Balchunas opined.

And how do you assess the prospects of Ethereum-ETF?