Two Things Ethereum Has That Bitcoin Doesn’t (The ETF Face-Off)

TL;DR
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our lord and savior Cathie Wood is now trying to create a spot ETF for Ethereum.
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An approval for a spot Ethereum ETF might take a whereas – the primary spot Bitcoin ETF was filed for again in 2016 and nonetheless hasn’t been authorized…
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There’re two large variations in the case of ETH: The through-line? Each of those features improve shortage.
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And shortage + growing demand (which an ETF would seemingly generate) = upward worth motion (that is the idea a minimum of).
Full Story
You recognize that spot Bitcoin Trade Traded Fund (ETF) that everybody is predicting will appeal to billions of {dollars} to Bitcoin?
(People purchase shares of the fund → the fund makes use of that cash to purchase Bitcoin, permitting merchants to purchase BTC with out having to fret about any authorized implications).
Yeah. Nicely, our lord and savior Cathie Wood is now trying to do the identical factor for Ethereum.
Now. An approval for a spot Ethereum ETF might take a whereas – the primary spot Bitcoin ETF was filed for again in 2016 and nonetheless hasn’t been authorized…
BUT! There’re nonetheless a number of issues value getting enthusiastic about in the case of an ETH ETF, as a result of Ethereum has some key attributes that make it a distinct financial beast, in comparison with Bitcoin.
So let’s overlook concerning the regulatory minefield set out in entrance of us for only a second, and dose ourselves with hopium.
There’re two large variations in the case of ETH:
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It may be staked (aka locked up in a excessive curiosity ‘crypto financial savings account’). The extra ETH is staked → the much less is accessible on the open markets.
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Each time an ETH transaction is made, a part of the transaction price is burned. The extra transactions are made → the extra ETH is burned → the much less is accessible on the open markets.
The through-line? Each of those features improve shortage.
And shortage + growing demand (which an ETF would seemingly generate) = upward worth motion (that is the idea a minimum of).
Watch this (painfully gradual shifting) area.