TL;DR
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our lord and savior Cathie Wood is now looking to create a spot ETF for Ethereum.
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An approval for a spot Ethereum ETF could take a while – the first spot Bitcoin ETF was filed for back in 2016 and still hasn’t been approved…
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There’re two big differences when it comes to ETH: The through-line? Both of these functions increase scarcity.
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And scarcity + increasing demand (which an ETF would likely generate) = upward price movement (that’s the theory at least).
Full Story
You know that spot Bitcoin Exchange Traded Fund (ETF) that everyone is predicting will attract billions of dollars to Bitcoin?
(Folks buy shares of the fund → the fund uses that money to buy Bitcoin, allowing traders to buy BTC without having to worry about any legal implications).
Yeah. Well, our lord and savior Cathie Wood is now looking to do the same thing for Ethereum.
Now. An approval for a spot Ethereum ETF could take a while – the first spot Bitcoin ETF was filed for back in 2016 and still hasn’t been approved…
BUT! There’re still a few things worth getting excited about when it comes to an ETH ETF, because Ethereum has some key attributes that make it a different economic beast, compared to Bitcoin.
So let’s forget about the regulatory minefield set out in front of us for just a second, and dose ourselves with hopium.
There’re two big differences when it comes to ETH:
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It can be staked (aka locked up in a high interest ‘crypto savings account’). The more ETH is staked → the less is available on the open markets.
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Every time an ETH transaction is made, part of the transaction fee is burned. The more transactions are made → the more ETH is burned → the less is available on the open markets.
The through-line? Both of these functions increase scarcity.
And scarcity + increasing demand (which an ETF would likely generate) = upward price movement (that’s the theory at least).
Watch this (painfully slow moving) space.
