A cautious outlook has been raised regarding the Ethereum spot exchange-traded fund (ETF), which has recently been the biggest concern in virtual asset investment. Currently, Wall Street predicts that Ethereum spot ETF trading will begin in the United States as early as this month or at the latest by the end of the year.
Choi Yoon-young, head of Korbit Research Center, observed at ‘Money Trends 2024’ held at the Lotte Hotel in Sogong-dong, Seoul on the 2nd, “The Ethereum spot ETF will have limited institutional fund inflow compared to the Bitcoin spot ETF listed in January of this year.” From the perspective of institutions that have just started using Bitcoin spot ETFs, they still lack the infrastructure to formulate investment strategies that take Ethereum spot ETFs into consideration. Additionally, the Ethereum spot ETF lacks the distribution payment function through staking (virtual asset deposit). For this reason, it is pointed out that “institutional investors lack a selling point to sell Ethereum spot ETFs to customers.”
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However, Center Director Choi added, “This does not mean that the inflow of institutional funds will be minimal,” adding, “Institutions’ interest in DeFi is very high.” For example, JP Morgan already had experience executing DeFi transactions in partnership with the Monetary Authority of Singapore (MAS) several years ago. He predicted, “After the approval of the Ethereum spot ETF, the incentive for institutions to participate in the DeFi ecosystem will increase.”
Oh Tae-wan, CEO of INF Crypto Lab, also cautioned, “Ethereum is less familiar than Bitcoin and does not provide staking profits, so the fund inflow will be less than that of the Bitcoin spot ETF,” adding, “The price fluctuation range may be greater than that of Bitcoin.” requested.
Regarding future investments in Ethereum, CEO Oh advised to watch for various changes, such as DeFi-centered on-chain application. He said, “On-chain activities are very important for Ethereum, and there is a possibility of mass adoption centered on on-chain,” adding, “If Ethereum is recognized as an investment target by institutional investors, interest in projects based on the Ethereum ecosystem will increase. CEO Oh also predicted that with the U.S. presidential election, interest in blockchain will increase more than before, adding, “The theme of artificial intelligence (AI) has continued in the stock market, and blockchain also includes decentralized physical infrastructure (DePIN). “Decentralized AI (DeAI) is an issue,” he said, adding, “Pay attention to what social problems blockchain can solve in the long term.”
- Reporter Yoo Joo-hee
- ginger@sedaily.com
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