The introduction of spot Bitcoin ETFs has attracted a new influx of investors, resulting in a notable increase in trading volume. This trend has generated a wave of optimism that extends beyond Bitcoin itself.
But this did not make the launch of the Ethereum Spot ETF earlier as the US Securities and Exchange Commission (SEC) is currently evaluating the possibility of creating such a fund. Despite the uncertainty, experts seem optimistic about the path of the world's largest altcoin.
Bullish forecast for Ethereum
Bitcoin is preparing for another important event this year – the halving, which is scheduled to take place in April this year. Given the previous halving events, Matthew Siegel, Head of Digital Assets at VanEck, shared a bullish forecast for Ethereum.
The executive expressed doubts about a “volatility,” a scenario in which Ethereum overtakes Bitcoin as the leading cryptocurrency asset. However, he expects Ethereum to outperform Bitcoin in terms of performance.
In a statement to CryptoQuant, Siegel said:
“In the medium term, ETH tends to outperform BTC in the first half of the year, right? So I don't want to lose the forest for the trees. I don't think there will be a flop, but I do think that when the year is over, ETH will outperform BTC.” “
Delay in spot ETFs
The VanEck executive discussed the regulatory challenges facing the asset class in the US, noting that the government's reluctance to engage banks and brokers is a major obstacle.
This cautious approach by financial institutions has affected the listing of ETFs related to crypto assets as well, as the SEC once again delayed its decision to approve or reject BlackRock and Fidelity's spot ETF.
“The U.S. government doesn't want banks and brokers touching these assets, right? So, as you see distribution strategies by money managers and financial advisors, you'll see that banks and bank-owned brokers have been slow to, or not listing, these ETFs as well. We expect “That regulation will change over time, but it represents a significant headwind and we have to constantly remind ourselves that this is not an American asset class. This is anti-dollarism.”
Jake Chervinsky, legal director of cryptocurrency firm Variant, echoed similar sentiments. The SEC is facing increasing political pressure and navigating market instability, both of which could impact decision-making about Ethereum ETFs, he said.
