A survey by Grayscale and Harris Poll suggests that if the U.S. Securities and Exchange Commission (SEC) approves a spot Ethereum (ETH) exchange-traded fund (ETF), it would likely lead to increased investment by Americans in the digital asset.
While the long-term performance of these ETFs is uncertain, opinion polls suggest that their introduction will significantly accelerate the maturation and mainstream adoption of the cryptocurrency market.
Ethereum ETF Drives Adoption
The poll revealed that nearly one in four voters would consider investing in Ethereum if an ETF-based product were approved, which would likely increase interest in Ethereum and other crypto assets beyond Bitcoin.
Read more: Ethereum ETF Explained: What is an ETF and How Does It Work?
U.S. investors are interested in an Ethereum ETF. Source: Grayscale
Grayscale’s findings support analysts’ predictions about the potential success of an Ethereum ETF. Quinn Thompson, founder of Rekar Capital, cited Neil Osborne, saying an ETH ETF would be a proxy for traditional investors who lack exposure to blockchain and cryptocurrencies outside of digital gold.
“Investing in Ethereum gives you exposure to stablecoins/payments, tokenization, DeFi, digital art/NFTs and infrastructure/staking/layer 2 scaling. All of this new technology is built on Ethereum, and fees are paid for its usage and activity, accumulating as revenue in the ETH network and tokens,” Quinn explained.
This outlook has many market experts predicting a large influx of investment capital once trading begins. Charles Yu, vice president of research at Galaxy Digital, estimates that the ETH ETF could attract up to $1 billion in inflows per month in the first five months. Similarly, Matthew Hougan, CIO at Bitwise, predicts $15 billion in inflows in the first 18 months.
Despite the potential for huge success, 25% of Grayscale respondents said that the ETF’s approval would not affect their interest in investing in it. The survey also revealed that a significant number of people are still unfamiliar with a spot Ethereum ETF. About 43% of U.S. voters were not aware of it.
Read more: Cryptocurrency ETNs vs Cryptocurrency ETFs: What’s the difference?
Ethereum ETF research. Source: Grayscale
Meanwhile, surveys show that cryptocurrencies are becoming an increasingly important topic for American voters: The survey found that a third of American voters have become more open to cryptocurrencies since the beginning of the year, and of those, 47% believe they will eventually include them in their investment portfolios.
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