Financial institutions are currently positioning themselves for the upcoming launch of a spot Ethereum (ETH) exchange-traded fund (ETF), as indicated by a VanEck analyst. Matthew Sigel, the head of digital assets research at VanEck, suggests that hedge funds are getting ahead of the game in anticipation of ETH ETF approvals in the United States. Sigel points to data from K33 Research, which shows a significant increase in inflows to Ether exchange-traded products (ETPs) in international markets outside of the US.

According to Sigel, “Hedge funds are preparing for the approval of ETH ETFs, with ETH on exchanges reaching near all-time lows and improving fundamentals. I might end up having to eat a BBQ HODL hat by July 4th. And you still bearish?” Sigel also presents a chart from CryptoQuant, a blockchain analytics firm, illustrating a downward trend in ETH supply on exchanges, suggesting that major players are accumulating Ethereum.

In a recent interview with the Bankless podcast, Sigel describes Ethereum as an “open source App Store,” and suggests that an ETH ETF could potentially surpass the success of Bitcoin ETFs in the future. He explains, “With the theoretical approval of spot Ethereum ETFs by the SEC, it is crucial to outline the investment potential of this asset. There is a larger market for income-producing assets compared to inert assets like Bitcoin (BTC). In the long run, the market for an Ethereum ETF could potentially outgrow that of Bitcoin. However, we need to educate traditional financial market participants on the significance of this asset.”

Sigel highlights the analogy of an “open source App Store” for Ethereum, emphasizing its productivity and lower fees compared to traditional tech giants. He aims to clarify how Ethereum functions as a platform for anyone to establish a storefront with integrated payment functionality. By explaining the mechanics and financial aspects of Ethereum, Sigel hopes to pave the way for a better understanding of the asset’s potential.

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