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Anthony Pompliano: Ethereum ETF to See Smaller Flows Than Bitcoin ETF

Anthony Pompliano: Ethereum ETF to See Smaller Flows Than Bitcoin ETF

Cryptonews2024/07/23 22:22
By:Hongji Feng
Anthony Pompliano: Ethereum ETF to See Smaller Flows Than Bitcoin ETF image 0

Anthony Pompliano predicts that the newly launched Ethereum exchange-traded fund (ETF) will not attract as much investment as Bitcoin ETFs.

In a recent TV interview with CNBC , Professional Capital Management Founder and CEO Pompliano explained that while the Bitcoin ETFs have seen massive inflows, Ethereum ETFs face more competition and lack the same level of media attention and hype.

Ethereum ETF Unlikely to Attract as Much Inflows


Due to several factors, Pompliano believes that Ethereum ETFs will not attract as much investment as Bitcoin ETFs. He emphasized that Ethereum’s story is less clear than Bitcoin, which is widely recognized as digital gold.

“With Bitcoin, it’s very clear; it’s digital gold,” said Pompliano. “When you start talking about Ethereum, you’re talking about a technology platform. There’s a lot more competition, etc.”

He pointed out that the media attention and hype surrounding the new ETFs are substantially lower than those seen with Bitcoin. According to Pompliano, this lack of media buzz contributes to the reduced interest in Ethereum compared to Bitcoin.

“People weren’t talking about it as much. The media attention, the hype, all that stuff isn’t really there,” Pompliano noted.

“The story isn’t as clear. It’s not as certain,” explained Pompliano, indicating that this uncertainty could deter some investors from flocking to Ethereum ETFs.

Pompliano Has Sold Ethereum for Solana


Additionally, Ethereum’s absence of staking rewards for ETF holders is another drawback. Unlike Bitcoin, which has a simpler and more compelling investment narrative, Ethereum’s complexity and lack of direct financial incentives for ETF investors could hinder its appeal.

“You’re not going to get access to the staking,” said Pompliano. “So the cash flow that people really like about Ethereum isn’t available to these ETF holders.”

In addition, Pompliano indicated that he sold all of the Ethereum he owned last year and bought Solana , while the latter outperformed.

“You want to be in the asset that is cheaper, faster, and likely going to receive more flows,” he stated. “Decentralized exchanges on Solana are actually eating into the market share of Ethereum. And so we just think there’s a lot more momentum.”

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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