Much like the US Bitcoin ETFs that launched in January, this first wave of US Ethereum ETFs will provide more avenues to a broader range of investors to access the asset. The introduction of these ETFs addresses key concerns around legitimacy, regulatory compliance, security, and accessibility, making Ethereum a more attractive investment option.

While we anticipate a steady capital deployment into these ETFs, it is unlikely to be dramatic initially and will fluctuate based on various macroeconomic factors. However, I believe that the potential for ETF liquidity to grow exponentially is significant. With SEC approval and listing, these ETFs can now be invested in by institutions, which typically have a long-term investment horizon. This institutional involvement could provide a stable and substantial influx of capital over time.

It will be interesting to observe how the performance of ETH ETFs in their early days of trading compares to the initial performance of Bitcoin ETFs in the US. The reception of US Bitcoin ETFs has been overwhelmingly positive, recording an inflow of $4.7B on the first trading day. Interest remains high, with US Bitcoin ETFs having a cumulative total net inflows exceeding $16.59 billion as of July 17 [1].
Whether ETH ETFs will receive the same intensity of reception remains to be seen, but I am confident that this development will be overwhelmingly bullish for the whole digital asset industry.

A recent survey by EY [2] found that nearly all institutions (94%) believe in the long-term value of digital assets and/or blockchain technology, with 50% of respondents expressing interest to invest in tokenized assets. ETFs could serve as a gateway for investors who might not otherwise have exposure to Bitcoin and Ethereum. Over time, these investors may transition to directly accessing digital assets, thereby contributing to the market's growth and maturation.

Links:
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[1] https://m.sosovalue.com/assets/etf/us-btc-spot
[2] https://www.ey.com/en_us/insights/financial-services/evolving-digital-assets-sentiment-among-investors
[3] http://www.jnpr.co.za/