According to Dr. Julian Hosp, CEO of Cake Group, an approved Futures Exchange Trust Fund (ETF) for Ethereum would be a game-changing development for the cryptocurrency market. Hosp noted that an Ethereum ETF would significantly impact the market because there are no institutional rails into Ethereum, unlike Bitcoin, where several institutional investors are already involved.
Holy S**t!! Ethereum Futures ETF already next week??— Dr. Julian Hosp (@julianhosp) September 28, 2023
The original deadline for the Ethereum Futures ETF, albeit uncertain, was set for October 12th.
An approved Futures ETF for Ethereum would be game changing, simply because so far, there are no real institutional rails into… pic.twitter.com/1AGykIuIUi
Hosp did not discount the potential of Bitcoin ETFs. He noted that spot ETFs for Bitcoin would be nice. However, he believes the existence of institutional rails in the ecosystem would limit the impact of the ETFs when they launch compared to what could be obtained with an Ethereum ETF.
In a recent post on X (formerly Twitter), Hosp recalled that the original deadline for the Ethereum Futures ETF was October 12. However, he noted that because of the impending shutdown of the US due to the debt ceiling, rumors are swirling that the Securities and Exchange Commission (SEC) wants to Fastlane the Ethereum Futures ETF to be approved at the beginning of next week.
On Thursday, September 27, Eric Balchunas, Senior ETF Analyst for Bloomberg, posted that there are 90% odds that Ether ETFs would start rolling out by early October. According to Balchunas, Valkyrie would lead the way, followed by over a dozen other Ether ETFs. He believes the development would generate significant market activity with much lower stakes than spot Bitcoin ETFs.
Hosp believes that if Balchunas’ predictions are correct, it could significantly impact the price of ETH, Ethereum’s native coin.
Contrary to Hosp’s opinion, a respondent to his post thinks the opposite would happen when an Ether ETF launches. The respondent, Van Angelo, posted that paper ETFs for Bitcoin have always led to massive selloffs. He thinks an Ether ETF will produce a similar result and wonders why it generates so much excitement among the Ethereum community. According to Angelo, paper dilutes supply, and its collateral is usually USDT.