The European markets might soon lead the way with the first Ethereum (ETH-USD) staking exchange-traded fund (ETF). Charles d’Haussy, CEO of the dYdX Foundation, believes Europe could be the frontrunner in this groundbreaking development. Speaking to Cointelegraph at EthCC, d’Haussy mentioned, “The U.S. is probably not ready for that, but the European market or some adjacent market will give us a way into Ethereum staking ETFs.” Despite the excitement, some experts, like Bloomberg’s Eric Balchunas, view Ethereum ETFs as a “sidekick” to the more established Bitcoin ETFs.
A Big Step for Crypto Adoption
Launching an Ethereum staking ETF would be an important development for the crypto industry. ETFs have historically driven major inflows into the underlying assets. For example, Bitcoin ETFs have been responsible for about 75% of new investments in Bitcoin, helping it surpass the $50,000 mark earlier this year. Ethereum could see a similar boost with the introduction of its own ETF.
The Market’s Optimism
There’s palpable excitement in the air. The market is betting heavily on the success of these new financial products. According to d’Haussy, the introduction of an Ethereum ETF could capture around 25% of the assets under management (AUM) of existing Bitcoin ETFs. He elaborated, “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.”
Imminent Launch in the U.S.
While Europe is expected to lead with the staking ETF, the U.S. isn’t far behind. The industry eagerly anticipates the launch of the first U.S. spot Ethereum ETFs, which could happen as soon as next week. “The [Ethereum ETF] launch is imminent. We can’t wait anymore. I think we’re talking about weeks,” d’Haussy told Cointelegraph.
What Is Ethereum’s Price?
At the time of writing, Ethereum is sitting at $3,468.
Key Takeaway
As Europe gears up to launch the first Ethereum staking ETF, the stakes are high. This move could set a new precedent for cryptocurrency investments, possibly capturing a significant slice of the market currently dominated by Bitcoin ETFs. If Ethereum’s staking ETF gains traction, it could not only enhance Ethereum’s visibility but also pave the way for broader adoption in the U.S. and beyond. Investors should keep an eye on these developments, as they could signal a major shift in how cryptocurrencies are integrated into mainstream finance.
