As the cryptocurrency world anticipates a decision from the U.S. Securities and Exchange Commission (SEC) on a spot Ethereum ETF, Samson Mow, CEO of Bitcoin adoption firm Jan3, said: voice Skepticism about the potential of Ethereum-based ETFs compared to Bitcoin.
He argues that the imminent approval of these funds is not necessarily a bullish signal for Ethereum, predicting that it will underperform Bitcoin ETFs “massively.”
Mow’s Call: Why Ethereum Holders Should Cash Out Now
Taking a closer look at Bitcoin advocates’ comments, Mow suggests that this period may be the last opportunity for Ethereum holders to sell their holdings at a favorable price compared to Bitcoin.
He points to the lack of staking rewards and low demand for Ethereum in various markets as reasons for his position. According to Mow, “This is your last chance to sell ETH for more than 0.05 BTC.”
I am not optimistic about the approval of an Ethereum spot ETF, as it will undoubtedly underperform significantly. #Bitcoin ETF. Compare the demand in other markets where both exist and consider that they do not offer staking rewards. This is your last chance to sell more than 0.05 BTC of ETH.
— Samson Mou (@Excellion) May 22, 2024
The majority echoed his sentiments in the comments on Mow’s post, which were restricted to his followers or people he mentioned. A user named ‘VeteranHODL’ suggested that the Ethereum ETF could be “the best-selling news event of the year,” and Mow agreed: “It’s a lot.”
Another commentator, ‘Satu Madu’, speculated that these ETFs could divert funds from Bitcoin ETFs, a theory Mow rejected, citing the lack of significant Ethereum accumulation by major institutional investors such as MicroStrategy. I dismissed it.
Be suspicious. show me $MSTR I am seriously accumulating Ethereum.
— Samson Mou (@Excellion) May 23, 2024
Meanwhile, Ethereum’s market performance has been strong so far, up nearly 30% over the past week and up 2.9% in the last 24 hours alone, reaching a price of $3,792. The rise comes amid speculation and investor interest regarding the outcome of the SEC’s pending decision on an Ethereum spot ETF.
Insights into Bitcoin Spot ETF
On the other end of the cryptocurrency ETF spectrum, Bitcoin spot ETFs have seen significant inflows, indicating strong investor interest. Net inflows hit $154 million on May 22, marking the eighth consecutive session of net inflows, according to SoSoValue data.
Among various Bitcoin spot ETFs, BlackRock’s IBIT recorded the highest net inflows on the day at $91.95 million, for a total of $16.08 billion. Fidelity’s FBTC also performed strongly, with daily net inflows of $74.57 million, reaching $8.65 billion.
In contrast, Grayscale’s GBTC experienced net outflows of $16.09 million, contributing to its historical total net outflows of $17.63 billion, indicating mixed sentiment within the sector.
The Bitcoin spot ETF’s total net asset value reached $59.2 billion, with a book-to-cap ratio of 4.33%. Cumulative net inflows currently reach $13.33 billion, reflecting growing confidence and continued interest in Bitcoin through this investment vehicle.
Featured image by Unsplash, chart by TradingView