No ‘Flippening’ Expected, but Ethereum Poised to Outperform Bitcoin: VanEck Executive

Read Time:2 Minute, 10 Second

The introduction of spot Bitcoin ETFs has attracted a fresh influx of investors, driving a notable increase in trading volume. This trend has generated a wave of optimism that extends beyond Bitcoin itself.

But this hasn’t made the launch of a spot Ethereum ETF any earlier as the US Securities and Exchange Commission (SEC) is currently evaluating the possibility of such a fund. Despite the uncertainty, experts appear to be bullish on the trajectory of the world’s largest altcoin.

Ethereum’s Bullish Outlook

Bitcoin is gearing up for another important event this year in the form of halving, which is scheduled for April this year. Looking at the previous halving events, Matthew Sigel, VanEck’s Head of Digital Assets, for one, has shared a bullish outlook for Ethereum.

The executive expressed doubt regarding the occurrence of a “flippening,” a scenario where Ethereum surpasses Bitcoin as the leading crypto asset. However, he anticipates that Ethereum will surpass Bitcoin in terms of performance.

In a statement to CryptoQuant, Sigel said,

“Over the medium term, ETH tends to outperform BTC in the halving year, right? So I don’t want to lose the forest for the trees. I don’t think there will be flippening, but I do think when the year is said and done, ETH will have outperformed BTC.”

Delays in Spot Ethereum ETFs

The VanEck exec discussed the regulatory challenges facing the asset class in the United States, noting that the government’s reluctance to involve banks and brokers poses a significant hurdle.

This cautious approach by financial institutions has affected the listing of ETFs related to crypto assets as well, with the SEC once again delaying its decision to approve or reject BlackRock and Fidelity’s spot Ethereum ETF.

“The US government doesn’t want banks and brokers to touch these assets, right? So as you see the distribution strategies by money managers and financial advisors, you will notice that the banks and the bank-owned brokers have been slow, or are not listing these ETFs as well. We do expect that regulation to change over time, but it is a considerable headwind and we constantly have to remind ourselves that this is not a US asset class. This is the anti-dollar.”

A similar sentiment was echoed by Jake Chervinsky, Chief Legal Officer of crypto firm Variant. He said the SEC is facing increasing political pressure and navigating through market instability, both of which may impact its decision-making process on spot Ethereum ETFs.

The post No ‘Flippening’ Expected, but Ethereum Poised to Outperform Bitcoin: VanEck Executive appeared first on CryptoPotato.

Leave a Reply

Your email address will not be published. Required fields are marked *