dYdX CEO Predicts EU Markets Will Introduce First Ether Staking ETF
dYdX CEO: The European markets may soon witness the introduction of the world’s first Ether staking exchange-traded fund (ETF), a move that could significantly impact cryptocurrency adoption.
dYdX CEO Highlights Potential Milestone
Charles d’Haussy, CEO of the dYdX Foundation, recently shared with Cointelegraph at EthCC that the cryptocurrency industry might soon see its inaugural Ether staking ETF. This development would represent a major milestone for the adoption of crypto ETFs.
“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,” d’Haussy remarked, emphasizing the potential for Europe to lead in this innovation.
Impact of ETFs on Cryptocurrency Markets
ETFs have the potential to drive significant inflows into the underlying crypto assets, contributing to their price appreciation. For Bitcoin (BTC), ETFs had accounted for approximately 75% of new investments as of February 15, surpassing the $50,000 mark.
d’Haussy expressed optimism about the upcoming Ether ETF, whether it will be an Ether staking ETF or a staked Ether ETF, noting that each could have unique implications for the market.
Anticipation of US Spot Ether ETFs
Meanwhile, the cryptocurrency industry eagerly awaits the launch of the first batch of US spot Ether ETFs, which could debut as early as next week. d’Haussy mentioned, “The [Ether ETF] launch is imminent. We can’t wait any longer. I think we’re talking about weeks.”
Grayscale’s Competitive Edge
Among the potential Ether ETF issuers, Grayscale’s fund is noted for its competitive fee structure, with the lowest waiver fee of 0.15%, according to James Seyffart, an ETF analyst at Bloomberg.
Expected Market Share and Performance
d’Haussy anticipates that Ether ETFs could capture approximately 25% of the assets under management (AUM) currently held by spot Bitcoin ETFs. He explained, “Of the AUM in crypto ETFs, 75% will be Bitcoin and 25% will be ETH. This proportion is evident when examining smaller ETFs and ETPs released in European markets.”
Projections and Market Dynamics
US spot Bitcoin ETFs have accumulated over $57.1 billion in total on-chain holdings since their launch in January, as reported by Dune. If Ether ETFs achieve 25% of Bitcoin ETF inflows, they could attract over $14.2 billion within the first six months. However, according to Eric Balchunas, senior ETF analyst at Bloomberg, Ether ETFs might remain a “sidekick” to Bitcoin ETFs in terms of inflows.
Balchunas noted: 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].
FAQ: European Ether Staking ETF and Market Impact
What is the significance of the first Ether staking ETF?
The introduction of the first Ether staking ETF in Europe represents a significant milestone for the cryptocurrency industry. It would be the first ETF focused on Ether (ETH) staking, potentially broadening the scope of investment opportunities in the Ethereum ecosystem and further legitimizing crypto investments.
Why is the European market expected to lead in Ether staking ETFs?
Charles d’Haussy, CEO of the dYdX Foundation, suggested that the European market may be more prepared to embrace Ether staking ETFs compared to the US. Europe’s regulatory environment and market readiness could provide a more favorable backdrop for the launch of such innovative financial products.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment