TL;DR
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our lord and savior Cathie Wood is now seeking to create a spot ETF for Ethereum.
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An approval for a spot Ethereum ETF may take a whereas – the primary spot Bitcoin ETF was filed for again in 2016 and nonetheless hasn’t been permitted…
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There’re two huge variations with regards to ETH: The through-line? Each of those capabilities enhance shortage.
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And shortage + growing demand (which an ETF would seemingly generate) = upward worth motion (that is the idea no less than).
Full Story
You already know that spot Bitcoin Alternate Traded Fund (ETF) that everybody is predicting will appeal to billions of {dollars} to Bitcoin?
(Of us purchase shares of the fund → the fund makes use of that cash to purchase Bitcoin, permitting merchants to purchase BTC with out having to fret about any authorized implications).
Yeah. Effectively, our lord and savior Cathie Wood is now seeking to do the identical factor for Ethereum.
Now. An approval for a spot Ethereum ETF may take a whereas – the primary spot Bitcoin ETF was filed for again in 2016 and nonetheless hasn’t been permitted…
BUT! There’re nonetheless a number of issues value getting enthusiastic about with regards to an ETH ETF, as a result of Ethereum has some key attributes that make it a unique financial beast, in comparison with Bitcoin.
So let’s neglect in regards to the regulatory minefield set out in entrance of us for only a second, and dose ourselves with hopium.
There’re two huge variations with regards to ETH:
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It may be staked (aka locked up in a excessive curiosity ‘crypto financial savings account’). The extra ETH is staked → the much less is out there on the open markets.
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Each time an ETH transaction is made, a part of the transaction price is burned. The extra transactions are made → the extra ETH is burned → the much less is out there on the open markets.
The through-line? Each of those capabilities enhance shortage.
And shortage + growing demand (which an ETF would seemingly generate) = upward worth motion (that is the idea no less than).
Watch this (painfully gradual shifting) house.
