New exchange-traded funds (ETFs) that directly hold Ethereum (ETH) are on the horizon in the U.S. These ETFs are expected to attract significant investments, potentially reaching $4 billion within just five months.
This prediction is based on existing ETH products in other countries and the high interest in ETH futures contracts among institutional investors. Analysts believe this surge in investment will reduce the available supply of ETH, potentially putting upward pressure on ETH price.
Similar to what happened with Bitcoin (BTC) after similar ETFs launched, increased demand for ETH could outpace supply, leading to a price rise. However, it's important to remember that cryptocurrency markets are volatile, and the price increase may not be immediate or linear.
The ETH ETFs are expected to launch in late June or early July, and analysts predict that ETH will finally outperform BTC after a long period of lagging behind.
Interestingly, these new ETFs won't allow for staking, a feature that lets investors earn rewards on their holdings. However, analysts say this shouldn't affect the popularity of the ETFs, as similar products in other countries haven't seen a decline in interest despite lacking staking.
