VanEck thinks Ether ETF would be even bigger than Bitcoin ETF

[thecodebear]

https://coinpedia.org/crypto-live-news/vaneck-predicts-ether-etfs-may-surpass-bitcoin-etfs-in-popularity/


VanEck, one of the Bitcoin ETF proviers, thinks Ether ETFs will make more sense to investors and be even more popular than Bitcoin ETFs.

What do you think?



Personally I can see that rationale simply from the fact that Ether has a payout from staking. So assuming the ETFs would stake the Ethereum and offer a perhaps quarterly payout, that would definitely help its popularity. Bitcoin's popularity of course it based on it becoming a global currency in the future and the world's alternative to fiat currencies. Makes more sense to actually own bitcoin itself, but for money stuck in TradFi circles BTC ETFs make for fantastic investments.

But Ether has much less of a visible use case than Bitcoin. Ethereum is the place where lots of fad crypto apps and random tokens and useless NFT pictures go. Even though the whole point of it being a smart contract platform is to use Ether MORE often than people use something that is simply a currency like Bitcoin, the fact that there isn't much reason to use anything built on Ethereum in the first place kinda makes it make more sense to hold Ether through an ETF simply to get the payout from staking. Of course that only works as long as people keep attempting to build stuff on Ethereum and the hype market for that continues. But if Ether ETFs get approved (which I think is realistically probably a few years away) TradFi getting access to a "bitcoin-like" thing that pays out ~3% annually income could actually be the most viable use case of Ethereum, far beyond any actual crypto-specific / smart contract use cases of Ethereum.

If there are enough people in TradFi who think Ethereum is close enough to Bitcoin that they should own it too, plus it comes with a payout like the dividends they are used to, that alone could keep Ethereum relevant even if the ETH ecosystem never really goes anywhere and just keeps being for fad-ish crypto experiments that pump and dump during Bitcoin-driven bull runs.

Anyway, interesting to think about. I personally own ETH at this point purely to make income from staking. I will just hold my ETH forever and use for passive income, never having to sell the capital base and pay taxes on that base. And that would be the use case of ETH ETFs, and may end up being the primary ETH use case in general. The question is, I suppose, is that enough, or are major applications gonna at some point have to be made on Ethereum for it to remain relevant and keep the price moving close to Bitcoin's trajectory.

So is making ~3% payout on a much less certain and more risky Ethereum enough to make it as big a hit or even a bigger hit with TradFi investors than Bitcoin is?

[Troytech]

I think it's just politics and don't take any of these stuff seriously, I personally don't even think there should be approving any other crypto ETF, like what's the need they are all alts and should be kept that way, I seriously won't even like a flood of crypto ETFS to come and confuse investors and drag more investors that should be in bitcoin towards altcoins again, moreover if they approve Ethereum ETF what next SOL ETF then i think the approval of an ETF would be a normal thing and wouldn't even mean much again in the crypto sector.

[OgNasty]

I think having a lower market cap obviously lends itself to being more effected by the ETF market.  So it's probably true that Ethereum will see larger price increase on a % basis than Bitcoin did.  However, Bitcoin somewhat benefits from ETFs, as it removes currency in circulation and makes it more of a store of value.  That lowers actual usage which keeps the blockchain from getting clogged up.  Ethereum benefits by a lot of usage, as that reduces the total number of Ethereum in supply.  I'm not sure taking it one step closer to being a store of value is a good thing, but it is for those pumping money into it and wanting to see higher prices.  Actual users will probably find the network unusable at some point after the ETF approval, which I guess will queue up the Solana network for a run at an ETF.

[jossiel]

32 ETH is the minimum amount for staking, correct? or joining pools with smaller amounts that we own and have that passive income through it. Well, it makes sense if VanEck thinks like that if they're talking about it as if it's bigger than the Bitcoin ETF because it can be what they're up to this time. But it cannot be denied that they're also one of the earliest to apply for a Bitcoin ETF so whichever is good for their business and profiting opportunities, they'd go for it.

But is this Eth Etf are going to be approved then by SEC when the senators are giving their thoughts to SEC that they should stop getting on and approving all of these etfs and for the meantime, they should just be fine having bitcoin etfs and don't need to have more of them anytime soon. Then, after its potential approval we'd see more of these bigger networks to be used for another etf and list goes on.

[JimboToronto]

There's a place for crypto/altcoin talk:

https://bitcointalk.org/index.php?board=224.0

[adaseb]

I think more people would be willing to invest in the ETH etf than BTC because they know that bitcoins market cap is already high and there is less room for growth compared to say ETH.

It’s possible for BTC to reach $100K which would be almost double from the day the etfs launched. But something like ETH which has a smaller market cap and decreasing supply, can easily triple or quadruple from here, and this is why many smaller retail investors might want to invest in it instead.

[mk4]

I don't think we even need to overanalyze this — the simple fact that if bitcoin goes higher and higher, people would simply want the next "cheaper" thing that's available on people's brokerage platforms, which is Ethereum.

And to add to that, the potential yield. People love yield lol.

There's a place for crypto/altcoin talk:

https://bitcointalk.org/index.php?board=224.0

Since we're talking about ETFs, this section is just fair.

[CryptoBuds]

I think more people would be willing to invest in the ETH etf than BTC because they know that bitcoins market cap is already high and there is less room for growth compared to say ETH.

It’s possible for BTC to reach $100K which would be almost double from the day the etfs launched. But something like ETH which has a smaller market cap and decreasing supply, can easily triple or quadruple from here, and this is why many smaller retail investors might want to invest in it instead.

I will not rule out this possibility because the main goal of every investment fund or investor is profit, and whichever has the potential to bring higher profits they will invest. Previously, there were many predictions that ETH would soon surpass bitcoin in the future in terms of market capitalization, and many bitcoiners did not like this. But if evaluated frankly, it is entirely possible.

Regarding whether the ETH ETFs will be approved or not, we need to wait and see how the SEC will make a decision. To me, if they accept the BTC ETFs, they could absolutely accept ETH, XRP, or any altcoin in the future.

[buwaytress]

Yes, let's do ETFs for everything out there such a brilliant idea. Especially since at least there will never be a supply problem for Ether (I still think there won't be in my lifetime a supply issue for bitcoin but pointless to speculate on that), it totally makes sense.

I can see all these ETF operators now rubbing their hands in glee as customers buy up Ether and the operators use it to stake, and earn free money hooray.

Bitcoin Ordinal ETFs next please.

[Aanuoluwatofunmi]

https://coinpedia.org/crypto-live-news/vaneck-predicts-ether-etfs-may-surpass-bitcoin-etfs-in-popularity/


VanEck, one of the Bitcoin ETF proviers, thinks Ether ETFs will make more sense to investors and be even more popular than Bitcoin ETFs.

What do you think?

Personally, that was his own view, he has the freedom of saying whatever thing he want, but let come to think of this in this ways and analyze the situations involved, Ether ETF is not approved yet, same way we cannot compare this same coin with bitcoin, the difference is much and clear, maybe we should first wait to see if there is going to be an approval or not for Ethereum to be approved ETF, but despite that, it cant make name as bitcoin and this has to be under those that will be investors subscribing for the Ether ETF.

[STT]

If it gives a yield its just about possible I guess, what I think more likely is speculative buying as an alternate to BTC.    On the way upwards, ETH and many alternative block chains have a potential to gain more.    Just like silver can gain more in percentage terms then gold does largely because today nobody cares about silver too much beyond industry where as gold has never stopped being used as money at least by some.    Even copper has been a monetary metal, it has future value I'd rather take that bet as an easy to foresee outcome.

Long term, final destination I dont think Bitcoin gives way to Ether.   This iteration of ETH is a split of the original classic ETH of course, I know that might be ancient history to some but its indication of the future likelihood of one protocol becoming superior to the other.   Maybe the most useful thing would be in comparing the two different ETH and which might grow more, appeal to the masses most easily during a bullish period across crypto.    

In any harder bearish market BTC will out perform.    I like silver, I consider it superior on a personal level for its varied utility but in monetary terms I dont rate it as the highest so I will state the same of BTC & ETH or ETC.

[electronicash]

apart that it could give yield to validators, they could easily take over the network through the money they have. validators do have a superpower in POS ETH. but it's true also price will skyrocket when the ETF is approved.

this i think is also the time for many crypto investors to join the Tradifi group, it's an opportunity to be part of the club. they are not the only ones who filed Ether ETFm BlackRock will not be an spectator.

[pawel7777]

Personally I can see that rationale simply from the fact that Ether has a payout from staking. (...)

Is the payment of staking rewards confirmed in any of the ETH ETFs applications/prospectuses?
If they do intend to pay such rewards to the holders, wouldn't it make it much more complicated in terms of getting SEC's approval?
From Garry Gensler's past announcements, it was pretty clear that he was somewhat positive towards Bitcoin (at least in the sense that he did not consider it to be a security etc) but wasn't very keen on other cryptos, especially those launched as ICO and offering smart contracts etc.
Personally, I don't think that yield from staking will be attractive enough for sophisticated investors, but could indeed drive in a lot of smaller, retail investors.

[Wind_FURY]

https://coinpedia.org/crypto-live-news/vaneck-predicts-ether-etfs-may-surpass-bitcoin-etfs-in-popularity/


VanEck, one of the Bitcoin ETF proviers, thinks Ether ETFs will make more sense to investors and be even more popular than Bitcoin ETFs.

What do you think?

What do I personally think? They should study about cryptocurrencies more and learn what makes Bitcoin an absolutely better blockchain/decentralized network than Ethereum. First they should start with Bitcoin's sybil protection mechanism with Proof Of Work. Ethereum threw away the best thing about its network out of the window to be a Proof Of Stake network, which is still very debatable if it truly works for sybil protection. But with Proof Of Work, as shown in Bitcoin and the incentive structure that surrounds it, we know it actually works.

[Marvell1]

https://coinpedia.org/crypto-live-news/vaneck-predicts-ether-etfs-may-surpass-bitcoin-etfs-in-popularity/


VanEck, one of the Bitcoin ETF proviers, thinks Ether ETFs will make more sense to investors and be even more popular than Bitcoin ETFs.

What do you think?

What do I personally think? They should study about cryptocurrencies more and learn what makes Bitcoin an absolutely better blockchain/decentralized network than Ethereum. First they should start with Bitcoin's sybil protection mechanism with Proof Of Work. Ethereum threw away the best thing about its network out of the window to be a Proof Of Stake network, which is still very debatable if it truly works for sybil protection. But with Proof Of Work, as shown in Bitcoin and the incentive structure that surrounds it, we know it actually works.

The problem is not that bitcoin's blockchain is better or ETH is better, they dare to assert that because what they want is profit and pushing up the price of ETH will be much easier than pushing up the price of bitcoin. The more centralized ETH is, the easier it is to manipulate, so they have a reason to make that statement.

Large investment funds enter the market for profit, they do not seek privacy or freedom like we do. The only thing they want is profit and whichever one gives them better profit, they will appreciate and focus on it more.

[Wind_FURY]

https://coinpedia.org/crypto-live-news/vaneck-predicts-ether-etfs-may-surpass-bitcoin-etfs-in-popularity/


VanEck, one of the Bitcoin ETF proviers, thinks Ether ETFs will make more sense to investors and be even more popular than Bitcoin ETFs.

What do you think?

What do I personally think? They should study about cryptocurrencies more and learn what makes Bitcoin an absolutely better blockchain/decentralized network than Ethereum. First they should start with Bitcoin's sybil protection mechanism with Proof Of Work. Ethereum threw away the best thing about its network out of the window to be a Proof Of Stake network, which is still very debatable if it truly works for sybil protection. But with Proof Of Work, as shown in Bitcoin and the incentive structure that surrounds it, we know it actually works.

The problem is not that bitcoin's blockchain is better or ETH is better, they dare to assert that because what they want is profit and pushing up the price of ETH will be much easier than pushing up the price of bitcoin. The more centralized ETH is, the easier it is to manipulate, so they have a reason to make that statement.

Large investment funds enter the market for profit, they do not seek privacy or freedom like we do. The only thing they want is profit and whichever one gives them better profit, they will appreciate and focus on it more.

But it WILL matter. Give it ten years, and let's check if it's still possible to run Ethereum full nodes with consumer hardware. If the ethos of decentralisation is dead, then why are they building their network on a blockchain? I believe in ten years Vitalik Buterin will have sold ALL of his personal wealth in Ethereum, and he will move on to another cryptocurrency "project". The network is failing in front of everyone, and currently, no one can truly see that yet.

[OgNasty]

apart that it could give yield to validators, they could easily take over the network through the money they have. validators do have a superpower in POS ETH. but it's true also price will skyrocket when the ETF is approved.

this i think is also the time for many crypto investors to join the Tradifi group, it's an opportunity to be part of the club. they are not the only ones who filed Ether ETFm BlackRock will not be an spectator.

It will be interesting to see how these ETH ETFs will work.  For example, they'll be staking the funds surely, so will they be paying a dividend in USD or will they be growing the assets per share?  Either way I think Wall Street will eat up any chance at being exposed to crypto and getting dividends or more ETH per share.  That alone is a lot of fuel to fight Bitcoin as crypto gets away from use cases and becomes a greater fool's race to get rich.  I know I'll be buying any ETH ETF that is offered for my retirement account and I suggest others do the same.  I did the same with BTC and it's up 70% already, being the second best performing asset in my IRA after only 2 months!

[virasog]

I think more people would be willing to invest in the ETH etf than BTC because they know that bitcoins market cap is already high and there is less room for growth compared to say ETH.

It’s possible for BTC to reach $100K which would be almost double from the day the etfs launched. But something like ETH which has a smaller market cap and decreasing supply, can easily triple or quadruple from here, and this is why many smaller retail investors might want to invest in it instead.

In terms of price, ETH looks more promising to the investors as a 10x increase in price would take bitcoin to around 35000$ which is very much possible in the next few years. Compare this to a 10x increase in bitcoin, which would take it to 700,000$ and that does not seem to be happening anytime soon.

But this is limited to the price speculation only. In terms of technology and security, it is worth saving your investment in bitcoin and not in Ethereum or any other cryptocurrency.

[adaseb]

With the news that we got last week. I don’t think we will get an approval in May. Maybe later on in the year or next year.

The biggest issue was the reports that the SEC thinks ETH is a security. And if there is some case ongoing about this then I don’t think any of those etfs will be approved. They will all get postponed for a later date.

[shinratensei_]

on the real side we still don't even have idea whether the ETF ethereum gonna be a thing or not theres rumour that its just a fake news and there's also rumour that it gonna be get listed for real no one know,but seem like many companies trying hard to get the ETF approved maybe vaneck is also one of them thats waiting for ethereum etf to repeat the success of bitcoin etf.

but personally i don't think it wlll be bigger than bitcoin etf in my opinion people don't really anticipate the approval of etf unlike back then when bitcoin was having its etf approved instead right now etf approval become the new common thing that so many investors find when they are investing.
etf is good to expose to bigger money and thats it i think.