Ether ETF will be a 'monster success,' but not like bitcoin
While the Securities and Exchange Commission (SEC) has yet to allow money managers to issue spot ether exchange-traded funds (ETFs), the regulator has given the green light to the New York Stock Exchange (^NYA) and Nasdaq (^IXIC) to begin listing the funds. Bloomberg Intelligence ETF Research Analyst James Seyffart joins Morning Brief to discuss the significance of this move for ethereum (ETH-USD) and other altcoins. Don't get hopeful, Seyffart says: altcoins don't have a shot at an exchange-traded fund anytime soon. The analyst explains that an ether ETF can exist today because it has a federally regulated futures market, like bitcoin (BTC-USD). These markets allow the SEC to monitor for fraud and manipulation. Though it seemed unlikely for an ether ETF to come to pass, "political winds shift quickly," Seyffart notes, pointing to pro-crypto legislation moving through Congress with support from both Democrats and Republicans. Seyffart adds that ethereum demand is 30% of bitcoin's, though an ether ETF will still be a "monster success." The analyst explains that ethereum loses utility when placed inside an ETF. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Gabriel Roy.
