VanEck, a leading global investment firm, expects the market for an Ether spot ETF to be robust. As such, index ETFs mimic the performance of cryptocurrency-based funds but do not offer staking rewards.
However, this factor may limit its size although the number of buyers could match or even surpass the number of HODLers who will prefer having a more liquid position through the inclusion of a spot Bitcoin ETF.
VanEck claims that Ether may present a positive asset with more dividend potential to a larger cash pool of investors including the preferred income-bearing asset class.
VanEck Portfolio Manager Pranav Kanade also stated that:
“From a market perspective, part of me believes that the market size for a spot ETH ETF is potentially as big if not bigger than the spot bitcoin ETFs.”
Currently, it is uncertain whether the SEC allows ETFs regulated by Ether spot for trading. Forecasts yield by analysts a possibility of 30% whereas VanEck sends out a more favourable outlook with a possibility of 50%.
Also Read: Bitcoin Breaks the $73K Barrier: ETF Inflows Ignite Record Highs
