- Jim Cramer says an Ethereum ETF will be the next big thing following the success of Bitcoin ETFs.
- The cryptocurrency industry doesn’t take Cramer’s prediction of an ETH ETF seriously, especially since he’s maintained a history of wrong predictions rooted in an anti-Bitcoin perspective.
- The initial success of spot Bitcoin ETFs may make the SEC’s decision around Ether ETFs more challenging.
Within this interesting period of Bitcoin’s surge and massive inflows into spot BTC ETFs, Investment Advisor Jim Cramer says it’s glaring that an Ethereum ETF “will soon bloom” given the success of the Bitcoin ETF. Cramer said that in a post which has returned nothing but heavy backlash to the CNBC Investing Club Chief, being that his crypto predictions have always gone the opposite direction. The major fear is that his tweet may cause FOMO and drive liquidity from Bitcoin to ETH when there could be a low probability for a Spot Ether ETF.
How Successful Have The BTC ETFs Been So Far To Contribute to an Ether ETF Approval
The Spot Bitcoin ETFs have continued to break new grounds and contribute to the surge of Bitcoin. In less than two months of their launch, there are now four Bitcoin ETFS holding over $2 billion worth of Bitcoin with the $ARKB (Ark 21 Shares Bitcoin ETF) being the latest to hit $2 billion in AUM (Assets Under Management). Interestingly, $IBIT (iShares Bitcoin trust) is on the forefront with $612 million worth of Bitcoin inflows as per Bloomberg ETF Analyst James Seyffart, putting the net spot BTC ETF inflow at an impressive $673 million.
$IBIT has also crossed $9 billion in assets and is expected to hit the $10B mark in the coming days. The recent rally around Bitcoin has been mostly attributed to the spot ETF activity as analysts see a big discrepancy between retail investor activity and Bitcoin’s bullish movement towards its ATH. Other analysis considers the ETFs a regulatory trap for BTC in the future, since the SEC could easily appropriate their plans against Bitcoin by controlling the ETF issuers.
While there might be some degree of truth in analysts’ different perceptions of the spot BTC ETFs, the fact remains that they are good for Bitcoin at the moment, judging from the rally we now see and the asset’s performance since the ETF approval. The Bitcoin ETFs have by far, outperformed the Gold ETF (GLD) by all metrics (volume, assets, flows, etc.) within a short time.
Senior ETF Analyst Eric Balchunas said he has “never seen an ETF go right up to the top 10 like that in that sort of a time.” According to Balchunas, if you combined all the trading in the Bitcoin ETFs, “you’re looking at something trading as much as Apple (AAPL)” which currently has a mammoth market cap of $2.78T.
Early Success Of Spot BTC ETFs Could Make a Potential SEC Approval of Ether ETFs More Difficult
Nate Geraci, President of the ETF Store and Senior ETF advisor has said the “initial success” of the Bitcoin ETFs could Make the SEC’s decision on Ether ETFs “more interesting or challenging.” According to Geraci, the SEC may opt to “Protect Investors” by maintaining that they should invest in Ether Futures ETFs. Or, they might give investors the “real thing” which is the Spot Ether ETFs.
There are currently 7 different firms awaiting the SEC’s approval of a Spot Ether ETF with all eyes on the May 23rd final deadline for VanEck’s Ether ETF approval. Besides the spot Bitcoin ETF victory over the SEC, another interesting factor that could determine the SEC’s decision on the Spot Ether ETF is the imminent US elections.
Senator Warren runs against Republican and crypto community favorite John Deaton for the Massachusetts Senate. On a political basis, an approval could stack the odds in Warren’s Favour, considering how closely she’s linked with SEC Chair Gary Gensler. However, the SEC can be unpredictable sometimes as Gensler may choose to press the pedals on delaying the approval or not approving at all while towing the line of Ether being a centralized unregulated security.