Did Trump Affect Ether ETFs? Also, Trading Begins When?

Did Trump Affect Ether ETFs? Also, Trading Begins When?

Trump’s late crypto support may have pushed Democrats to embrace ether ETFs.

Reviewed by: etf.com
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Edited by: Kent Thune

The rapid turnaround in sentiment that led to a big win for spot Ethereum ETFs may be tied to Democrats’ worries that recent crypto support from the Trump campaign will cost them votes.

Meanwhile, analysts say the spot ether funds may begin trading anywhere from two to 12 weeks after the SEC yesterday approved a rule change for the Nasdaq, NYSE and other exchanges that would permit the new funds to trade.

The presumed Republican presidential nominee’s campaign this week began accepting cryptocurrency donations, reversing what had been Trump’s skepticism toward digital money and Trump talked of building a “crypto army” in recent speeches. Democrats began to fear they’d lose pro-crypto voters, and opposition to Ethereum ETFs began to melt, Bloomberg ETF analyst Eric Balchunas said in an interview.

“It all started with Trump who said at a rally on May 8 if you’re pro-crypto you have to vote for Trump,” said Balchunas, who on Monday tripled his odds for spot ether approval to 75%. “For political reasons they did a 180 -- The Dems don’t want to be seen as anti-crypto anymore.”

When Will Ethereum ETF Trading Begin?

Analysts generally expect massive inflows into the spot Ethereum exchange-traded funds. Standard Chartered Bank, in a note this week to clients, predicted inflows of $15 billion to $45 billion in the first 12 months of trading, rivaling flows of spot bitcoin ETFs.  

“We think ETH would keep pace with BTC,” the note from Geoffrey Kendrick said.

Investor and author Ric Edelman sounded a similar positive tone.  

All of the ETF sponsors will be winners, as the asset flows over time will be substantial,” said Edelman, founder of the Digital Assets Council of Financial Professionals and a member of the etf.com editorial advisory board. “The biggest funds will likely be similar to what we’ve seen with the spot bitcoin ETFs.”

Spot Bitcoin vs Spot Ether Flows

Balchunas was less optimistic regarding flows. 

"They will be lucky if they get 20% of the assets spot bitcoin has gotten,” he said. “Most normal people are going to be satisfied with bitcoin as their crypto hot sauce.”

The spot bitcoin ETFs that began trading in January, the day after the SEC approved them Jan. 10, have more than $60 billion in assets. The biggest are the Grayscale Bitcoin Trust ETF (GBTC) and the iShares Bitcoin Trust (IBIT).

Ethereum and ether futures ETFs dipped today. The ProShares Ether Strategy ETF (EETH) fell 2.6%, while still being up 56% this past year. The $88.2 million fund has pulled in $55 million this year.