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Hedge funds betting on SEC approval of spot ethereum ETFs, says VanEck head

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Hedge funds are positioning themselves in anticipation of the US Securities and Exchange Commission approving spot ethereum exchange-traded funds, according to a report by CryptoSlate. 

In an X post, Matthew Sigel, head of digital assets research at investment management firm VanEck, wrote: “Hedge funds are front-running the ETH ETF approvals, ETH on exchanges is near an all-time low, fundamentals are improving. I could be eating BBQ HODL hat by July 4th. And you’re bearish?” 

He cited K33 Research data in revealing a large spike in inflows to ether exchange-traded products outside of US markets.

Blockchain analytics firm CryptoQuant reported a downtrend in ETH supply on exchanges, indicating that major players are accumulating ethereum. 

In a recent interview on the Bankless podcast, Sigel likened ethereum to an “open-source App Store”, emphasising its versatility and productivity compared to bitcoin. 

He said: “Overall, there’s a bigger market for income-producing assets than for inert assets like Bitcoin. It’s not impossible that in a decade, the market for an ethereum ETF could surpass that of bitcoin. 

“We think of ethereum as a productive asset that offers an open-source App Store with integrated payments functionality. We aim to elucidate the mechanics of how ethereum works and provide a detailed analysis of its profit and loss statements.” 

Hedge funds are evidently bullish on ethereum, betting on the SEC’s approval of spot ETFs as a catalyst for further price appreciation. The decline in ETH supply on exchanges suggests that these funds are accumulating in anticipation of future gains. 

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