- European markets may soon see the launch of the first Ether staking ETF, a significant step for cryptocurrency.
- dYdX Foundation CEO, Charles d’Haussy, predicts Ether ETFs could capture 25% of Bitcoin ETF assets under management.
- The US market is not yet ready for Ether staking ETFs, but European markets may lead the way.
The European cryptocurrency market is on the brink of a significant development with the potential launch of the first Ether staking exchange-traded fund (ETF). This move could mark an important milestone in the adoption of cryptocurrency ETFs.
Charles d’Haussy, CEO of the dYdX Foundation, discussed the upcoming Ether staking ETF during an exclusive interview with Cointelegraph at the EthCC conference. He highlighted that while the US may not be ready for such an ETF, the European market or other adjacent markets might pave the way for its introduction.
ETFs have historically brought considerable inflows to the underlying crypto assets, significantly impacting their price appreciation. For example, Bitcoin ETFs accounted for about 75% of new investments in Bitcoin by mid-February, helping the cryptocurrency surpass the $50,000 mark.
d’Haussy expressed optimism about the upcoming Ether ETF, whether it will be an Ether staking ETF or a staked Ether ETF, each with its implications. He stated, “The [Ether ETF] launch is imminent. We can’t wait any more. I think we’re talking about weeks.”
European Market Leads the Way
The anticipation surrounding Ether ETFs is growing, with industry experts eagerly awaiting the launch of the first US spot Ether ETFs, expected as soon as next week. However, the focus remains on the European market, which is likely to take the lead in this area.
James Seyffart, an ETF analyst at Bloomberg, noted that Grayscale’s fund had the lowest waiver fee of 0.15% among all prospective Ether ETF issuers. This competitive fee structure could attract more investors to Ether ETFs.
Potential Impact on Market
Despite some concerns about the potential inflows to Ether ETFs, d’Haussy expects these ETFs to capture about 25% of the assets under management (AUM) of the current spot Bitcoin ETFs. He explained, “Of the AUM in crypto ETFs, 75% will be Bitcoin and 25% will be ETH. This proportion is seen in smaller-size ETFs and ETPs released in European markets.”
US Bitcoin ETFs have accumulated over $57.1 billion in total on-chain holdings since their launch in January, according to Dune. If Ether ETFs manage to capture 25% of Bitcoin ETF inflows, they could see over $14.2 billion in the first six months.
However, some analysts, like Eric Balchunas from Bloomberg, believe Ether ETFs may only play a secondary role compared to Bitcoin ETFs in terms of inflows. Balchunas commented, “Bitcoin is like enough crypto hot sauce. Ethereum is harder to explain, but I’m just seeing it being a sidekick [to Bitcoin].”
