TL; DR
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our lord and savior Cathie Hout is now looking to create a spot ETF for Ethereum.
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An approval for a spot Ethereum ETF can be a while – the first spot Bitcoin ETF was filed in 2016 and still is not approved…
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There are two major differences when it comes to ETH: The through line? Both functions increase scarcity.
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And scarcity + increasing demand (which an ETF would likely generate) = upward price movement (at least that’s the theory).
Full story
You know that spot Bitcoin Exchange Traded Fund (ETF) that everyone expects to pick up billions from dollars to Bitcoin?
(People buy shares of the fund → the fund uses that money to buy Bitcoin, allowing traders to buy BTC without worrying about any legal implications).
Yes. Well, our lord and savior Cathie Hout now wants to do the same for Ethereum.
Now. An approval for a spot Ethereum ETF can be a while – the first spot Bitcoin ETF was filed in 2016 and still is not approved…
BUT! There are still a few things worth being excited about when it comes to an ETH ETF, as Ethereum has some key features that make it a different economic beast than Bitcoin.
So let’s forget about the regulatory minefield that lies ahead and give ourselves a dose of hopium.
There are two major differences when it comes to ETH:
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It can be staked (aka locked in a high-interest “crypto savings account”). The more ETH is staked → the less is available on the open markets.
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Every time an ETH transaction is made, a portion of the transaction fee is burned. The more trades are made → the more ETH is burned → the less is available on the open markets.
The through line? Both functions increase scarcity.
And scarcity + increasing demand (which an ETF would likely generate) = upward price movement (at least that’s the theory).
Check out this (painfully slow-moving) room.