EthFinance

After $ETH ETF approval how will tradfi  allocate to crypto ETFs?

(a) 75% BTC : 25% ETH acc to mcap

(b) 50% : 50% fair split

(c) overweight ETH due to being environmentally friendly & a tech asset (vs digital gold)

Leaning towards (c) & fund flows will crash $ETH market cap w/ whatever $ETH is left on exchanges

ro-_-b aka evmlion |

r/ethfinance's EVMavericks drop assigned me a matrix lion |

tech, business & humanities background |

firm Ethereum believer

Good point. The next 1-2 years will for sure melt many faces 🫠

Even if it's 70% BTC to 30 % ETH the numbers for ETH are disproportionately large given ETHs market cap. Many funds are environmentally friendly and can only choose ETH for crypto exposure

Doesn't it depend on consumer demand?    So it depends how consumers want to allocate, which I suspect will favor BTC allocation, at least this year. Hard to predict longer time frame.

Near (a). That would basically mean investment is done according to mcap, imo that would be huge already. Also because 1$ in a smaller mcap = higher impact on price.

I don't see much flows into the ETH ETFs. Anyone who wanted exposure to crypto will allocate to BTC ETFs before the ETH ones are approved.  This will leave only the most savvy investors to allocate 50/50 BTC/ETH.  And a tiny pocket of 100% ETH.