Bloomberg's Senior ETF Analyst Eric Balchunas has expressed skepticism regarding the potential impact of spot Ethereum exchange-traded funds (ETFs), suggesting they may attract significantly less investment compared to Bitcoin ETFs. According to Balchunas, Ethereum ETFs might capture only "10-15% of the assets of BTC ETFs," likening it to a lesser-known band following a superstar at a concert.

On May 20, reports emerged indicating a 75% chance that the US Securities and Exchange Commission (SEC) would approve an ETH ETF, a stark contrast to earlier doubts. This news spurred a notable bullish trend, leading to a more than 20% increase in Ethereum's price, pushing it above $3,700. According to CryptoSlate, this surge resulted in 90% of ETH holders being in profit, as noted by blockchain analytics platform IntoTheBlock.

Despite this positive momentum and optimistic forecasts by some analysts predicting substantial inflows for ETH ETFs akin to the successful launch of BTC ETFs in January, Balchunas remains cautious. He downplayed the enthusiasm, stating that ETH ETFs are unlikely to match the asset levels of BTC ETFs.

In parallel developments, Fidelity submitted an updated S-1 registration statement to the SEC for its proposed Ethereum ETF, notably removing references to staking or staking rewards. This revision aligns with the SEC's heightened scrutiny of crypto staking, as evidenced by its lawsuits against major exchanges such as Kraken and Coinbase for allegedly violating federal securities laws through their staking products. Balchunas remarked on the SEC's firm stance, highlighting that the updated document clearly indicates the SEC's refusal to permit staking.

As the crypto market continues to evolve, the future of Ethereum ETFs remains a topic of keen interest. Balchunas' tempered outlook serves as a reminder of the challenges and uncertainties that lie ahead, despite the recent bullish trends and increased optimism surrounding Ethereum's market potential.

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