The cryptocurrency industry has been a talking point across mainstream media due to the ongoing speculation surrounding the spot Bitcoin exchange-traded funds (ETF), which 11 applications were approved by the United States Securities and Exchange Commission (SEC) on Jan. 10.
With the Bitcoin halving around the corner, and all the talk around regulations, has this led to this US Congressman purchasing Ethereum (ETH)?
US Congressman Purchases Ethereum
According to a report from X account Insider Tracker, which tracks the stocks of CEOs, executives and congress members, US Representative for Georgia, Michael Collins, has reportedly made two transactions for Ethereum purchases within the past two weeks.
Given that the spot Bitcoin ETFs have just been approved by the SEC, many eyes are looking towards Ethereum, in hopes that the Ethereum ETFs may also have a shot at being approved in 2024.
On January 9, BeInCrypto reported on crypto investor “DCInvestor” telling his 235,000 X followers that Ethereum “will do better and retain more value after this cycle than the vast majority of assets.”
He added that Ethereum already has futures-based ETFs, so a spot fund will be approved next in the United States.
Ethereum Futures ETF Did Not Meet Expectations
Meanwhile, on October 5, BeInCrypto reported that the debut week of several Ethereum Futures ETFs did not meet investors expectations. This was in terms of price and trading volume.
Nine Ethereum Futures ETFs were introduced to the market this week. These were launched by investment firms ProShares, VanEck, Bitwise, Valkyrie, Kelly, and Volshares.
However, upon their launch on October 2, Ether Futures attracted just under $2 million in flows.
Anticipating a price increase, Ethereum’s price rose by approximately 4.5% to reach $1,734 the day before the launch on October 1. However, it concluded on October 2 at $1,659, marking a 4% decline.
Meanwhile, it was recently reported that the demand for Ethereum ETFs may not generate the same demand as Bitcoin ETFs.
Crypto analyst Raoul Pal, highlighted a crucial difference between Bitcoin and Ethereum.
“Ethereum offers a broader-based technology bet and yields that Bitcoin does not,” he stated. This distinction is vital for institutional investors, who are not just looking for price appreciation but also additional benefits.
Pal argued that if Ethereum ETFs do not offer staking yields, institutions may opt for just owning Ethereum directly.
Investors prefer holding the asset as it enables them to stake it and generate yields, an option generally unavailable through ETFs.
