Investors cautious about ether ETFs tied to spot price, missing potential yields, positive.

From Investing.com

July 23, 2024 5:37 PM:

Investors are cautious as US launches ETFs tied to ether spot price, contrasting with bitcoin hype. Trading begins six months after bitcoin ETFs. Ether ETFs forecasted to attract 10-25% bitcoin flows. SEC excludes staking mechanism, affecting potential yields. Ethereum staking yields 3.12%, more appealing for some investors.

Institutional investors view unstaked ether ETFs as missing potential yields. SEC treats staking as an investment contract, requiring disclosures. CoinShares opts out of unstaked ETFs. ETC Group’s staked ether ETPs more popular due to potential earnings. Uncertainty around staking exit queue time poses illiquidity risks.

Ether ETFs launch marks significant step in crypto, offering access to multiple applications on blockchain. Investors believe ether flows unlikely to match bitcoin’s due to smaller market cap. Bitcoin ETFs attracted $33.1 billion in inflows by June. Ether ETFs expected to have less initial impact compared to Bitcoin.

Read more at Investing.com: Like a bond with no yield? Investors split on ether ETFs By Reuters