Hedge funds are positioning themselves in anticipation of the US Securities and Exchange Commission approving spot ethereum exchange-traded funds, according to a report by CryptoSlate.
In an X post, Matthew Sigel, head of digital assets research at investment management firm VanEck, wrote: “Hedge funds are front-running the ETH ETF approvals, ETH on exchanges is near an all-time low, fundamentals are improving. I could be eating BBQ HODL hat by July 4th. And you’re bearish?”
He cited K33 Research data in revealing a large spike in inflows to ether exchange-traded products outside of US markets.
Blockchain analytics firm CryptoQuant reported a downtrend in ETH supply on exchanges, indicating that major players are accumulating ethereum.
In a recent interview on the Bankless podcast, Sigel likened ethereum to an “open-source App Store”, emphasising its versatility and productivity compared to bitcoin.
He said: “Overall, there’s a bigger market for income-producing assets than for inert assets like Bitcoin. It’s not impossible that in a decade, the market for an ethereum ETF could surpass that of bitcoin.
“We think of ethereum as a productive asset that offers an open-source App Store with integrated payments functionality. We aim to elucidate the mechanics of how ethereum works and provide a detailed analysis of its profit and loss statements.”
Hedge funds are evidently bullish on ethereum, betting on the SEC’s approval of spot ETFs as a catalyst for further price appreciation. The decline in ETH supply on exchanges suggests that these funds are accumulating in anticipation of future gains.
