ETH Spot ETF Debuts Successfully...Sustained Success Unclear
Bloomberg reported on April 24 that "Nine U.S. ETH spot ETFs surpassed $1 billion in trading volume on their first day of trading in what could be considered a blockbuster debut. However, it's unclear if the box office record can be sustained." "The rationale for the bearish outlook boils down to two main factors. The first is that ETF investors looking for crypto exposure may have already achieved it through BTC spot ETFs. The BTC Spot ETF has seen $17 billion in net inflows year-to-date since its launch earlier this year.
The second is whether Ethereum can prove its elevator pitch. Bitcoin is easily described as "digital gold" or "an inflation hedge. Ethereum, on the other hand, is one of those assets where it's not immediately clear to investors what it is or how it's differentiated from Bitcoin. In an informal survey by Bloomberg Intelligence, when asked what Ethereum is, "programmable money" was the most common answer. The implications of this ambiguity are not small. Experts have likened Bitcoin and Ethereum to gold and silver. Investors are interested in gold, but not so much in silver. This is even more true for investors who already own gold. Silver ETFs currently have $17 billion in assets under management, but that's only about 15% of gold ETFs."
