EU Markets Will Pave the Way for First Ether Staking ETF: dYdX CEO

Charles d’Haussy, CEO of the dYdX Foundation, anticipates the launch of the first Ether staking ETF in European markets, marking a significant milestone for cryptocurrency adoption.

Points

• dYdX CEO predicts Ether staking ETF launch in Europe.
• Ether staking ETF seen as a milestone for crypto adoption.
• US not ready for Ether staking ETFs, but Europe could lead.
• Anticipation for US spot Ether ETFs to debut soon.

The European markets may soon witness the introduction of the first Ether staking exchange-traded fund （ETF）, a significant step for cryptocurrency adoption. Charles d’Haussy, CEO of the dYdX Foundation, shared his insights during an exclusive interview with Cointelegraph at EthCC, highlighting the potential for an Ether staking ETF to debut in Europe.

According to d’Haussy, while the US market might not be ready for an Ether staking ETF, the European market or an adjacent one could lead the way. ETFs, which are investment funds traded on stock exchanges, can bring substantial inflows to the underlying crypto asset, contributing to its price appreciation. Bitcoin ETFs have already demonstrated this potential, accounting for about 75% of new investment in Bitcoin by mid-February 2024.

D’Haussy expressed optimism about the next Ether ETF, whether it will be an Ether staking ETF or a staked Ether ETF. He explained that the launch of such financial products would mark a significant milestone for the crypto industry, enhancing liquidity and market participation.

Meanwhile, the industry eagerly anticipates the debut of the first batch of US spot Ether ETFs, which could happen as soon as next week. James Seyffart, an ETF analyst at Bloomberg, noted that Grayscale’s fund came in with the lowest waiver fee of 0.15%, making it a competitive option for investors.

Despite concerns about inflows, d’Haussy expects Ether ETFs to capture around 25% of the assets under management （AUM） of the current spot Bitcoin ETFs. This translates to over $14.2 billion worth of inflows in the first six months if they replicate 25% of Bitcoin ETF inflows.

解説

• ETFs and Crypto Adoption: ETFs are critical financial instruments that can drive significant investment into the underlying assets. The launch of an Ether staking ETF would mark a major milestone for cryptocurrency adoption, providing a regulated and accessible way for investors to gain exposure to Ether.
• European Market Leadership: Europe’s readiness to launch an Ether staking ETF ahead of the US highlights its proactive approach to embracing cryptocurrency innovations. This leadership can set a precedent and encourage other markets to follow suit.
• Market Impact: The introduction of Ether ETFs, including staking and spot ETFs, can enhance liquidity, increase market participation, and contribute to price appreciation. These financial products offer investors new opportunities to diversify their portfolios.
• Competitive Landscape: With Grayscale’s fund offering competitive fees, the landscape for Ether ETFs is set to become highly competitive. This competition can benefit investors by providing more options and potentially lower costs for gaining exposure to Ether.