Bloomberg Senior ETF Analyst Eric Balchunas downplayed the enthusiasm around spot Ethereum exchange-traded funds (ETFs), suggesting they may attract significantly less investment compared to Bitcoin ETFs.

On May 20, reports indicated a 75% chance that the US Securities and Exchange Commission (SEC) would approve an ETH ETF, a sharp contrast to earlier skepticism.

This news led to a more than 20% increase in ETH’s price, pushing it above $3,700, according to CryptoSlate. IntoTheBlock, a blockchain analytics platform, noted that this price rise put 90% of ETH holders in profit.

Despite this bullish trend, which led some analysts to predict significant inflows for ETH ETFs similar to the success of BTC ETFs launched in January, Balchunas remains skeptical. He estimates that ETH ETFs might capture only “10-15% of the assets of BTC ETFs.” He likened the situation to a concert where a lesser-known band follows a superstar, explaining his view that ETH ETFs won't see the same level of assets as BTC ETFs.

Meanwhile, Fidelity submitted an updated S-1 registration statement to the SEC for its proposed Ethereum ETF, removing references to staking or staking rewards. This change is likely due to the SEC’s scrutiny of crypto staking, as the agency has sued major exchanges like Kraken and Coinbase for allegedly violating federal securities laws with their staking products.

Balchunas commented on the SEC’s stance, noting that the updated document makes it clear that the SEC will not permit staking.