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‘Is Ether just Bitcoin Lite?’ Broker’s client questions signal grim ETF adoption – DL News

Ethereum is proving to be a tough sell for large-scale institutional investors, such as pension funds, compared to Bitcoin. According to Duncan Trenholme, co-head of digital assets at TP Icap, Bitcoin’s clear narrative makes it easier for sales teams to explain, while Ethereum is more challenging for investment professionals accustomed to traditional asset classes.

Institutional clients often question the differences between Ether and Bitcoin, leading to confusion about Ethereum’s role in an investment portfolio. This lack of a clear narrative could hinder the success of Ethereum ETFs compared to their Bitcoin counterparts, as ETF issuers aim to attract real inflows from sources like pension funds.

US public pension funds, with $6.1 trillion in assets, are starting to consider including cryptocurrencies in their portfolios. However, it may take time for these funds to embrace Bitcoin and Ethereum fully. Experts like Manuel Nordeste from Fidelity Digital Assets anticipate gradual acceptance of crypto assets, particularly through the safer option of ETFs.

Bitcoin ETFs have seen significant success, with nearly $58 billion in inflows since their launch in January. While there is debate about whether Ethereum ETFs will experience similar success, industry insiders like Ethereum co-founder Joe Lubin believe there is substantial demand for these products. The Securities and Exchange Commission is expected to approve spot Ethereum products in July, although concerns remain about the potential exclusion of staking from issuers’ applications.

Despite fluctuations in the crypto market, with Bitcoin and Ethereum experiencing slight declines, the future of Ethereum ETFs remains uncertain. As the industry awaits regulatory approvals, analysts and investors are closely monitoring developments in the cryptocurrency market.

Written by Jo Wright for DL News. Contact her at joanna@dlnews.com.

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