U.S. asset manager VanEck is predicting that %Ethereum (CRYPTO: $ETH) exchange-traded funds (ETFs) could become the biggest and most popular investment vehicle for %Cryptocurrencies.
VanEck Portfolio Manager Pranav Kanade made the comments as a deadline for the U.S. Securities and Exchange Commission (SEC) to approve spot Ethereum ETFs approaches at the end of May.
“From a market perspective, part of me believes that the market size for spot (Ethereum) ETFs is potentially as big, if not bigger, than the spot Bitcoin ETFs,” said Kanade in an interview.
VanEck’s own %BitcoinTrustETF (HODL) is among the most popular of nearly a dozen such funds that launched this past January following a greenlight from the SEC.
Less than two months since their launch, the spot Bitcoin ETFs have attracted more than $10 billion U.S. of investor capital.
Kanade said a major difference and benefit with Ethereum ETFs can be found in staking.
As Ethereum uses a %ProofofStake (PoS) consensus mechanism, holders of the cryptocurrency can earn yield by “staking,” or putting their tokens to work on the blockchain.
Kanade notes that on crypto exchange %Coinbase (NASDAQ: $COIN), Ethereum stakers can earn a 3% yield.
Still, the odds of the SEC approving spot Ethereum ETFs is not guaranteed. Traders currently put the odds of the ETFs being approved at 30%.
VanEck currently manages nearly 70 exchange-traded funds covering a wide range of economic sectors and asset classes.