• VanEck’s Matthew Sigel says that hedge funds are frontrunning Ethereum ETF approvals by the SEC and are accumulating billions of dollars worth of ETH in anticipation.
• VanEck has continued to back ETH, saying that the altcoin’s ETFs will eventually eclipse BTC, even as Ethereum struggles to reclaim the $3,600 level.

Some of the world’s largest hedge funds are accumulating Ethereum in anticipation of the SEC’s approval of an ETH spot ETF in the coming weeks, VanEck’s Matthew Sigel says.

The SEC approved Ethereum spot ETFs last month but has yet to give the final authorization that will pave the way for their launch on exchanges. Chair Gary Gensler has remained noncommital on when the agency will give the green light, and ETF experts are divided. Some say it could be as early as the start of July, as Crypto News Flash reported.

Sigel, who heads the digital assets division at the investment firm, took to social media to share his thoughts on Ethereum, stating:

Hedge funds are front-running the ETH ETF approvals, ETH on exchanges is near an all-time low, and fundamentals are improving. I could be eating BBQ HODL hat by July 4th. And you’re bearish?

Sigel cited data from K33, a research firm, that showed investment in ETH exchange-traded products has been increasing for the past four weeks, recording over 86,000 ETF in net flow. Additionally. data from Crypto Quant shows that the number of ETH held on exchanges has been dipping since 2021 and stands at a three-year low of around 18 million.

What’s Next for Ethereum?

At press time, Ethereum traded at $3,529, gaining 3.6% in the past day as the market cap hit $431 billion. Trading volume, however, declined 11.5% to $17.99 billion.

The price increase came on the back of an announcement by ConsenSys that the SEC had dropped its legal action against the company for securities violations related to Ethereum. As Crypto News Flash reported, some in the crypto have interpreted this as the agency’s endorsement that ETH is not a security, and while Ether holders celebrated this, the XRP community was outraged.

The SEC’s move will be welcome by institutional investors in Ethereum as they would be more restricted in investing in the token. VanEck remains one of the altcoin’s biggest backers. Sigel recently predicted that over the next decade, Ethereum ETFs would surpass Bitcoin ETFs. The latter have been a massive success, with the three largest ETFs holding nearly $50 billion in assets.

However, according to Sigel, Ether has more to offer as it has more ways to make money than Bitcoin does, such as through staking. He stated:

Overall, there’s a bigger market for income-producing assets than for inert assets like Bitcoin (BTC). It’s not impossible that in a decade, the market for an Ethereum ETF could surpass that of Bitcoin.

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