Mainstream media has been abuzz with discussions about the cryptocurrency industry, particularly the ongoing speculation surrounding the approval of spot Bitcoin exchange-traded funds (ETFs). On January 10, the United States Securities and Exchange Commission (SEC) greenlit 11 applications, now turning speculation towards Ethereum (ETH).
Is the upcoming Bitcoin halving and regulatory climate encouraging a US Congressman to acquire Ethereum?
US Congressman Purchases Ethereum
According to a report from X account Insider Tracker, which monitors stocks of CEOs, executives, and congress members, Michael Collins, the US Representative for Georgia, has reportedly conducted two transactions for Ethereum purchases in the last 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 likely be approved in the United States next.
Meanwhile, there have been reports of other government officials purchasing crypto recently.
BeInCypto reported that during the time period between May 30, 2020, and May 30, 2023, the South Korean National Assembly members purchased crypto worth 62.5 billion won (approx $48 million) and sold crypto worth 63.1 billion won (approx $48.6 million).
Read more: How To Buy Ethereum (ETH) With a Credit Card: A Step-by-Step Guide
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, Ethereum futures attracted just under $2 million in inflows.
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.
BeInCrypto recently reported that 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.
Read more: Solana vs. Ethereum: An Ultimate Comparison
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