K33 Research says that the demand for ETH is not too great currently
Experts from K33 Research believe that the weak trading results of Ethereum ETFs indicate that investors should return to investing in the main cryptocurrency. Analysts Anders Helseth and Vetle Lunde pointed out that the total trading volume of ETH futures exchange-traded funds in the first 24 hours reached only 0.2% of the trading volume of the Bitcoin Stategy ETF (BITO), launched in the fall of 2021.
Crypto market participants hardly expected that the volumes of ETFs on Ethereum would be close to those of BITO, since the latter was launched against the backdrop of a bull market. But analysts were not prepared for such weak results.
Lack of investor interest in the new funds forced Lunde to change his ETH buying advice to capitalize on the “ETF hype.” After the launch of the funds, the price of ether actually increased by 5%, but quite quickly the growth ended and the fall began.
“The launch of ETH futures ETFs has taught us an important lesson in assessing the impact of easier access to crypto investments for traditional investors: expanding this access only grows the asset if there is significant pent-up demand. However, right now the demand for ETH is not too great,” Lunde wrote.
Bitwise Investment Director Matt Hougan disagrees with him, who is confident that Ethereum has even greater investment potential than the first crypto coin.
“Ethereum is a new global computing platform that has the potential to revolutionize the entire financial industry and much of the creative world… The value of Ethereum is determined by cash flows. This is different from most other crypto assets. The more people use the Ethereum network, the more revenue the blockchain generates,” said a Bitwise representative.
He also gave real examples of how the largest global companies work with ETH. For example, Nike has made $200 million in revenue from Ether-based digital products over the past few years. The new PayPal payment app is also developed on Ethereum.
