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Ethereum ETFs Could Be “As Big If Not Bigger” Than Bitcoin ETFs Says VanEck Fund Manager

Last Updated March 15, 2024 1:38 PM
James Morales
Last Updated March 15, 2024 1:38 PM
By James Morales
Verified by Peter Henn

Key Takeaways

  • VanEck Portfolio Manager Pranav Kanade said that Ethereum ETFs could be bigger than Bitcoin equivalents.
  • He said: “I think ETH could make more sense as an asset to more people than Bitcoin does.”
  • However, the SEC will need to approve any Ether ETFs first.

There are many parallels between the Ethereum Exchange Traded Funds (ETFs) currently awaiting approval from the Securities and Exchange Commission (SEC) and the Bitcoin-based funds that were approved in January.

But according to the VanEck Portfolio Manager Pranav Kanade, if Ether ETFs do receive the regulatory green light, they could prove even more attractive to investors. 

Ethereum ETFs “Make More Sense” to Many Investors Says VanEck Manager

In a recent interview, Kanade, who manages VanEck’s Digital Assets Alpha Fund, said he believed “the market size for a spot ETH ETF is potentially as big if not bigger than the spot Bitcoin ETFs.”

Referring to Ethereum’s yield potential, he said that even if ETFs couldn’t stake their crypto, he thought “ETH could make more sense as an asset to more people than Bitcoin does”.

If Kanade is right, exchange-listed Ethereum funds could present a multi-billion-dollar opportunity.

Since they were first listed, Bitcoin ETFs have amassed BTC worth nearly $60 billion. On March 12, net inflows surpassed $1 billion in a single day.

VanEck’s Crypto Aspirations

VanEck’s HODL is one of 10 spot Bitcoin ETFs listed on US securities exchanges. However, it only represents a fraction of the wealth the firm manages across its ETF portfolio.

However, Kanade said the company’s CEO Jan VanEck would like to increase total exposure to crypto, “sooner rather than later”.

He said: “Jan’s aspiration is to have crypto be 15% of the [assets under management] base one day in the future.”

But only the SEC can determine whether Ether ETFs have a role to play in that future

Chances of ETF Approval Cut to 35%

After the SEC approved spot Bitcoin ETFs in January, it looked as if ETH-based equivalents proposed by VanEck, BlackRock and others would follow.

Bloomberg ETF analysts initially placed the odds of approval before a May deadline at 70%.

But since then, they have adjusted their prediction to reflect more negative signals from the SEC, reducing the odds to just 35% on Monday, March 11.

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