In the grand theater of finance, two newly birthed cryptocurrency exchange-traded funds (ETFs) have stumbled onto the stage, clutching a meager blend of Bitcoin (BTC) and Ether (ETH). Their entrance, however, has been met with a collective yawn, as modest inflows trickle in, reminiscent of a slow leak in a sinking ship, according to the ever-watchful eyes of CryptoMoon. 😴
Behold the Franklin Crypto Index ETF (EZPZ), a creation of the esteemed Franklin Templeton, which has managed to attract a paltry $2.5 million in net assets since its debut on February 20. One might wonder if they left their marketing strategy in the lost and found. 🧐
Meanwhile, the Nasdaq Crypto Index US ETF (NCIQ), birthed by the asset manager Hashdex, has garnered just over $1 million since its launch on February 14. At this rate, they might as well be collecting pocket change! 💸
To put this in perspective, Franklin Templeton’s Franklin Bitcoin ETF (EZBC) pulled in a staggering $50 million on its first day back in January 2024. And let’s not forget the Bitwise Bitcoin ETF (BITB), which raked in nearly $240 million on its inaugural trading day. Talk about a warm welcome! 🎉
Single-asset spot Ether ETFs, on the other hand, have seen even weaker interest, with a mere $100 million in net inflows on their first day of trading on July 23. It seems investors are playing hard to get! 😅
Limited Diversification
These two fledgling ETFs are designed to track a diverse index of crypto assets, promising US investors a one-stop-shop for their crypto cravings. Yet, they are shackled by the chains of limitation, permitted only to hold Bitcoin and Ether. It’s like being offered a buffet but only being allowed to eat the bread rolls! 🍞
Both funds cling to indexes that hold crypto in proportion to each token’s market capitalization, which means they are overwhelmingly dominated by BTC, boasting a market cap of approximately $1.9 trillion as of February 21, according to the oracle known as Google Finance. 📈
However, the dream of a diversified portfolio remains just that—a dream, pending the elusive regulatory approval. In October, NYSE Arca, a securities exchange, sought permission to list a Grayscale ETF that would hold a more diverse basket of spot cryptocurrencies. Fingers crossed! 🤞
The Grayscale Digital Large Cap Fund, created in 2018 but still waiting in the wings, holds a crypto index portfolio comprising Bitcoin, Ether, Solana (SOL), and XRP (XRP), among others. It’s like waiting for a bus that never arrives! 🚌
The SEC has acknowledged a flurry of applications for new types of ETFs, including those holding altcoins like SOL and XRP. Analysts, with their crystal balls, predict that more types of crypto ETFs will be approved in 2025. Let’s hope they’re right, or we might be stuck in this slow lane forever! ⏳
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2025-02-22 01:00