According to Usman Ahmad, CEO of Zodia Markets, investors are eagerly anticipating the possibility of Ethereum (ETH-USD) becoming the next cryptocurrency to be included in a spot exchange-traded fund (ETF). This sentiment shift is reflective of the evolving landscape in the cryptocurrency market.
After the US Securities and Exchange Commission (SEC) approved the first US-listed ETFs to track bitcoin (BTC-USD) earlier in January, investors are anticipating the potential approval of spot ether ETFs.
Ahmad noted that the market’s focus had initially been on the approval of a spot bitcoin ETF, with expectations already factored into prices. With the realization of this approval, attention swiftly shifted towards Ethereum. He underscored Ethereum’s price surge of approximately 10% to 12% following the approval of several spot bitcoin ETFs, signaling Ethereum’s emergence as a frontrunner for the next potential ETF approval.
Assessing the future trajectory, Ahmad expressed uncertainty regarding whether Ethereum would surpass Bitcoin’s performance. He reasoned that with Bitcoin now accessible via ETFs, there might be heightened demand for it. Indeed, Bitcoin has witnessed increased demand owing to its newfound accessibility facilitated by ETFs.
Taking a longer-term view, he expects bitcoin to continue performing well and experiencing a price increase as it becomes more widely accessible to the mass market.
Ahmad also observed that fund managers such as BlackRock (BLK), who filed an application for a spot ether ETF with the SEC in November 2023, might pave the way for the market to gain access to baskets of crypto assets within ETF wrappers in the future.
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