- May 23, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
As the crypto world anticipates the US Securities and Exchange Commission (SEC)’s decision on spot Ethereum ETFs, Samson Mow, CEO of Bitcoin adoption firm Jan3, has voiced 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 they will “massively underperform” compared to Bitcoin ETFs.
Mow’s Call: Why Ethereum Holders Shoud Probably Cash Out Now
Diving deeper into the Bitcoin advocate remarks, Mow suggests that this period may be the last opportunity for Ethereum holders to sell their holdings at a favorable price relative to Bitcoin.
He points to the lack of staking rewards and the lower demand for Ethereum in various markets as reasons for his stance. According to Mow, “This is the last chance to sell ETH above 0.05 BTC.”
Ethereum spot ETF approvals are not bullish as they will undoubtedly massively underperform #Bitcoin ETFs. Compare demand in other markets where both exist, and factor in that they will not give staking rewards. This is the last chance to sell ETH above 0.05 BTC.
— Samson Mow (@Excellion) May 22, 2024
The majority echoed his sentiments in the comments of Mow’s posts, which were restricted to only his followers or people he mentioned. A user named ‘VeteranHODL’ suggested that Ethereum ETFs might become the “biggest sell the news event this year,” Mow agreed, stating: “Many.”
Another commenter, ‘Satu Madu,’ speculated that these ETFs could divert funds from Bitcoin ETFs, a theory Mow dismissed by citing the lack of significant Ethereum accumulation by major institutional investors like MicroStrategy.
Doubt it. Show me a $MSTR accumulating Ethereum seriously.
— Samson Mow (@Excellion) May 23, 2024
Meanwhile, Ethereum’s market performance has been strong so far, with a nearly 30% increase over the past week and a 2.9% rise in the last 24 hours alone, bringing its price to $3,792. This rise comes amidst speculation and investor interest in the outcome of the SEC’s pending decision on Ethereum spot ETFs.
Insights Into Bitcoin Spot ETFs
On the other side of the crypto ETF spectrum, Bitcoin spot ETFs have seen significant inflows, indicating strong investor interest. According to SoSoValue data, the net inflow reached a record $154 million on May 22, marking the eighth consecutive net inflow.
Among the various Bitcoin spot ETFs, BlackRock’s IBIT saw the highest net inflow for the day at $91.95 million, bringing its total to $16.08 billion. Fidelity’s FBTC also showed strong performance with a daily net inflow of $74.57 million, culminating in $8.65 billion.
In contrast, Grayscale’s GBTC experienced a net outflow of $16.09 million, contributing to its total historical net outflow of $17.63 billion, indicating a divergent investor sentiment within the sector.
Bitcoin spot ETFs‘ total net asset value has reached $59.20 billion, with a net asset ratio of 4.33%. The cumulative net inflow now stands at $13.33 billion, reflecting the growing confidence and sustained interest in Bitcoin through these investment vehicles.
Featured image from Unsplash, Chart from TradingView
