Three Persuasive Arguments for Ethereum Exchange-Traded Funds to Attract Wall Street’s Interest

Three Persuasive Arguments for Ethereum Exchange-Traded Funds to Attract Wall Street's Interest

Three proposals that could attract investors from Wall Street to Ethereum’s ETFs

Ethereum currently houses the leading DeFi protocols, tokenized real-world assets, and stablecoins. However, its technological plan may be difficult for traditional finance to comprehend.

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The upcoming spot crypto exchange-traded fund is likely to center around Ethereum, the second-largest blockchain network in the world. However, the platform may struggle with its sales pitch.

Ethereum has been referred to as the “internet of money,” a “world computer,” and “digital oil” in the past. However, some are concerned that it lacks a concise pitch and its complex roadmap may be challenging for Wall Street to understand, potentially decreasing interest in Ether (ETH) ETFs.

According to Markus Thielen, the lead researcher at 10x Research, the most effective pitches for investors should not contain complex terminology. Here is how Thielen and other experts suggest presenting Ethereum.

Future of finance

According to Thielen, Ethereum is seen as a more comprehensible network for investors on Wall Street, being hailed as the “network driving the future of finance.”

“Almost all of the world’s most significant decentralized finance protocols, tokenized real-world assets, and stablecoins are currently residing on Ethereum.”

Thielen mentioned that Ethereum has experienced a decrease in users and the implementation of network upgrades has been considerably delayed, which could potentially affect this storyline.

Despite its staking yields being lower than treasury yields, the comparatively small revenues generated by Ethereum in relation to its market capitalization do not make it a viable or adequately cash-generating investment.

All-in-one decentralization

Henrik Andersson, the chief investment officer at Apollo Crypto, suggests that Ethereum has the potential to become a platform for various decentralized services, including finance, social networks, and AI.

Source: Eric Balchunas

Apart from decentralized finance apps, the Ethereum ecosystem also encompasses decentralized autonomous organizations (DAOs), social media platforms, and identity solutions.

Faster growing Bitcoin

Andersson proposes a more straightforward argument that Ether has greater potential than Bitcoin as a cryptocurrency.

According to him, some may see Ethereum as a smaller but rapidly expanding cryptocurrency.

Ether’s current market capitalization is $453 billion, which is about three times smaller than Bitcoin’s market capitalization of $1.34 trillion.

Andersson believes that Ether’s potential for price increases will draw others in, and he is confident that Wall Street investors will not be deterred by Ethereum’s complex six-stage technical plans.

Ether’s value compared to Bitcoin has continuously decreased from 0.085 in December 2021 to 0.055 presently, regardless of its technical nature.

According to CK Zheng, a hedge fund manager at ZX Squared Capital, this will make it more challenging to persuade investors to purchase Ether exchange-traded funds when a similar investment option for Bitcoin already exists in the market.

ETH/BTC chart over the last 12 months. Source: CoinGecko.

Zheng pointed out that the Securities and Exchange Commission’s investigation into the Ethereum Foundation and Solana’s emergence as a rival to Ethereum are potential obstacles that may impact the success of spot Ether ETFs.

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According to Larry Fink, it is worth believing in and you should as well.

Some of the leading companies on Wall Street are already investigating and implementing the potential uses of Ethereum, achieving significant results.

In March, BlackRock, one of the authorized Ethereum ETF issuers, employed Ethereum to transform their BlackRock USD Institutional Digital Liquidity Fund into tokens. This fund has accumulated $470 million in assets.

BlackRock’s CEO

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