VanEck Believes Ethereum ETFs Can Outperform Bitcoin ETFs

Investment manager VanEck believes that Ethereum-based spot exchange-traded funds (ETFs) could end up becoming bigger than this type of Bitcoin-based product following possible approval from the US Securities and Exchange Commission (SEC) in the coming months.

American company VanEck believes that an Ethereum ETF has the potential to attract huge demand according to information published by Coindesk. In an interview, Pranav Kanade, portfolio manager at VanEck, commented on the matter.

“From a market perspective, part of me believes the market size for a spot ETH ETF is potentially as large, if not larger, than spot bitcoin ETFs,” he said.

In his vision, Kanade highlighted that Ethereum “could make more sense as an asset for more people than Bitcoin.”

“The world of investors looking for money-producing assets is huge, and ETH obviously generates fees that go to token holders,” Kanade explained. “Even if you don’t have an ETF that can offer staking as part of it, it’s still an asset that produces money, so I think ETH could make more sense as an asset for more people than Bitcoin.”

It is worth remembering that the potential approval of a spot Ethereum exchange-traded fund (ETF) was heavily speculated in the crypto community after the Securities and Exchange Commission (SEC) approved Bitcoin ETFs on January 10. Speculation has highlighted the possibility of approval of an Ethereum ETF later this year.

Recently, investment bank TD Cowen shed light on an estimated timeframe for the launch of an Ethereum ETF spot, according to information from The Block. According to the publication, the ETF is expected to be approved in the US between the end of 2025 or beginning of 2026.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.