According to a Bloomberg report, analysts anticipate that the introduction of recently approved Ethereum ETFs in the US might attract notably less interest compared to Bitcoin products traded directly. Prominent financial institutions like BlackRock and Fidelity are awaiting final approvals from the Securities and Exchange Commission (SEC) to launch the eagerly awaited Ethereum funds.

However, JPMorgan strategists project that Ethereum ETFs will see much smaller net inflows compared to the $15.3 billion invested in Bitcoin vehicles this year.

There's a division among analysts regarding the potential of Ethereum ETFs. The success of Bitcoin ETFs, established over five months ago, is attributed to a controversial narrative portraying Bitcoin as digital gold, a narrative not as strongly associated with Ether. Moreover, Ethereum ETFs won't offer staking rewards for maintaining the blockchain, a feature available to those who hold the token directly.

Caroline Bowler, CEO of BTC Markets Pty, points out that Ether lacks the same recognition as Bitcoin, with Bitcoin's market value of $1.4 trillion being three times higher than Ether's. This suggests that Ethereum ETFs in the US may not have a similar impact.

Despite initial reservations, there's optimism from some quarters. Vetle Lunde, a senior research analyst at K33 Research, predicts substantial net inflows of $4 billion into Ethereum ETFs in the first five months, foreseeing a significant "supply absorption shock" that could drive up ETH's price.

VanEck, a fund manager planning to launch an Ethereum ETF, sees potential in the Ethereum blockchain's popularity, particularly in crypto financial services. Matthew Sigel, VanEck’s Head of Digital-Asset Research, believes investors will eventually recognize Ethereum's greater potential for application and innovation compared to Bitcoin.

The launch of nine new US ETFs for Bitcoin in January initially caused a decline in Bitcoin's price, along with outflows from the Grayscale Bitcoin Trust. However, the strong demand for the new ETFs eventually outweighed these concerns, and Bitcoin resumed its upward trajectory.

Similarly, asset manager Grayscale plans to convert its $11 billion Ethereum offering into an ETF, akin to its Bitcoin fund. While redemptions from the Grayscale fund may create selling pressure on ETH, the overall market impact remains uncertain.

At the time of writing, ETH was trading at $3,830, while Bitcoin continues to approach its record levels of $73,700 reached in March. Ether still lags behind its all-time peak of $4,866, achieved during the 2021 bull run.