The European markets could see the introduction of the first Ether staking exchange-traded fund (ETF) as a potentially significant move for cryptocurrency adoption.
According to Charles d’Haussy, CEO of the dYdX Foundation, the cryptocurrency industry might soon see its first ETF based on Ether (ETH) staking. This would mark a significant milestone in the adoption of crypto ETFs.
Speaking exclusively to Cointelegraph at EthCC, d’Haussy said that the next significant question is the debut of the first Ether staking ETF:
“The US is probably not ready for that, but the European market or some adjacent market will give us a way into Ethereum staking ETFs.”
ETFs can bring significant inflows for the underlying crypto asset and significantly contribute to its price appreciation. For Bitcoin (BTC), ETFs had accounted for about 75% of new investment in the world’s largest cryptocurrency by Feb. 15, as it surpassed the $50,000 mark.
D’Haussy added that he is bullish on the next Ether ETF, whether that will be an Ether staking ETF or staked Ether ETF, which could have different implications. He explained:
Related: Institutions are more bullish on Ether than retail ahead of ETH ETF launch
US spot Ether ETFs launch is “imminent”
Meanwhile, the industry is eagerly expecting the launch of the first batch of US spot Ether ETFs, which could debut as soon as next week.
When asked about the debut of the first spot Ether ETFs, d’Haussy said that it is only a matter of time:
“The [Ether ETF] launch is imminent. We can’t wait any more. [I] think we’re talking about weeks.”
Out of all the prospective Ether ETF issuers, Grayscale’s fund came in with the lowest waiver fee of 0.15%, according to James Seyffart, an ETF analyst at Bloomberg.
Related: Ether ETF opens the floodgates for Solana ETFs and crypto products: Analyst
Ether ETF will capture around 25% of Bitcoin ETF AUM
Despite the growing anticipation around Ether ETFs, some investors fear incoming disappointment in terms of inflows.
However, dYdX’s d’Haussy expects Ether ETFs to capture around 25% of the assets under management (AUM) of the current spot Bitcoin ETFs. He said:
“Of the AUM in crypto ETFs, 75% will be Bitcoin and 25% will be ETH. Why? I’m thinking this way if I look at the smaller-size ETFs and ETPs, which have been released in European markets, you find this proportion.”
The US spot Bitcoin ETFs have amassed over $57.1 billion worth of total onchain holdings since their launch in January, according to Dune. Ether ETFs would capture over $14.2 billion worth of inflows in the first six months if they manage to replicate 25% of Bitcoin ETF inflows.
Yet the Ether ETFs may only be a “sidekick” to the more established spot Bitcoin ETFs in terms of inflows, according to Eric Balchunas, senior ETF analyst at Bloomberg. Balchunas told Cointelegraph:
“Bitcoin is like enough crypto hot sauce. You’re like, ‘You know, I’m good.’ These things move together anyway. Ethereum is harder to explain, but I’m just seeing it being a sidekick [to Bitcoin].”
