VanEck head of digital assets research Matthew Sigel believes financial institutions are gearing up for the imminent launch of spot Ethereum (ETH) exchange-traded funds (ETFs) in the US despite the funds pending regulatory approval .
Sigel said in a social media post on June 18 that hedge funds are strategically positioning themselves as they actively anticipate the ETFs will be approved.
He added that data from K33 Research indicates a significant rise in inflows to Ether exchange-traded products (ETPs) outside the US markets, which suggests that large investors are preparing for the regulatory green light for the spot Ethereum ETFs .
According to Sigel:
“Hedge funds are front-running the ETH ETF approvals, ETH on exchanges is near an all-time low, and fundamentals are improving. I could be eating BBQ HODL hat by July 4th. And you’re bearish?”
Supporting this observation, blockchain analytics firm CryptoQuant reported a downtrend in ETH supply on exchanges, which is a sign that major players are accumulating Ethereum.
‘Open-source App store’
In a recent interview on the Bankless podcast, Sigel said that VanEck views Ethereum as an “open-source App Store,” positioning it as a more versatile and productive asset compared to Bitcoin.
The firm believes that Ethereum ETFs could eventually become more successful than their Bitcoin counterparts due to the broader market for income-producing assets.
According to Sigel:
“Overall, there’s a bigger market for income-producing assets than for inert assets like Bitcoin (BTC). It’s not impossible that in a decade, the market for an Ethereum ETF could surpass that of Bitcoin.”
Sigel emphasized the need to educate traditional financial market participants about Ethereum’s significance . He drew analogies to help clarify ETH’s potential, highlighting its productive nature and its ability to allow anyone to create a storefront on its network at a lower cost than major tech companies.
He added:
“We think of Ethereum as a productive asset that offers an open-source App Store with integrated payments functionality. We aim to elucidate the mechanics of how Ethereum works and provide a detailed analysis of its profit and loss statements.”
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