VanEck, a leading global financial firm, believes the market for an Ether spot ETF will be solid. As a result, index ETFs replicate the performance of cryptocurrencycurrency-based funds but do not provide staking incentives.
However, this feature may limit its magnitude, even if the number of buyers matches or even exceeds the number of HODLers who would prefer a more liquid position with the inclusion of a spot Bitcoin ETF.
VanEck says that Ether may be a positive asset with higher dividend potential for a larger cash pool of investors, including the preferred income-bearing asset class.
Pranav Kanade, VanEck Portfolio Manager, also mentioned that:
“From a market perspective, part of me believes that the market size for a spot ETH ETF is potentially as big if not bigger than the spot bitcoin ETFs.”
Currently, it is unclear whether the SEC will enable ETFs regulated by Ether spot to trade. Analysts forecast a 30% chance, while VanEck predicts a 50% chance.
