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Table of Contents
1. Diversity and innovation potential of the Ethereum ecosystem
2. The technological dividends brought by the upgrade of Ethereum 2.0
3. Differentiated allocation needs of institutional investors
4. Relative friendly nature of the regulatory environment
5. The driving force of market cycles and speculative sentiment
Home web3.0 Bitcoin ETFs continue to be popular, and Ethereum ETFs have come from behind. Why do investors prefer the latter?

Bitcoin ETFs continue to be popular, and Ethereum ETFs have come from behind. Why do investors prefer the latter?

Jul 29, 2025 pm 03:42 PM
tool original universe Bitcoin cryptocurrency Ethereum Ethereum etf Ethereum 2.0

Ethereum ETFs are more popular. 1. The Ethereum ecosystem supports innovative applications such as DeFi and NFT, and has broader application prospects; 2. Ethereum 2.0 is upgraded to proof of stake and sharding technology to improve efficiency and scalability, and enhance long-term value expectations; 3. Institutions regard Bitcoin as "digital gold" and Ethereum as "digital oil", and configuring Ethereum ETFs will help diversified layout; 4. Ethereum is actively communicating with the foundation due to its environmental protection characteristics, and the regulatory environment is relatively friendly; 5. The current market is in the early stage of a bull market, and Ethereum has historically high elasticity to attract speculative funds, and ETFs lower the threshold for participation and amplify the capital inflow effect.

Bitcoin ETFs continue to be popular, and Ethereum ETFs have come from behind. Why do investors prefer the latter? - php Chinese

Recently, the cryptocurrency market has ushered in a new round of boom, and Bitcoin ETFs and Ethereum ETFs have become the focus of investors' attention. Although Bitcoin ETFs continue to attract capital inflows with their first-mover advantage and market size, the rapid rise of Ethereum ETFs has shown stronger market appeal. Investors' favor for Ethereum ETFs mainly stems from the following key factors:

1. Diversity and innovation potential of the Ethereum ecosystem

As "digital gold", Bitcoin is mainly positioned as a store of value, while Ethereum is a smart contract platform with more functions, supporting innovative fields such as decentralized finance (DeFi), non-fungible tokens (NFT), and meta-universe. With the rapid development of DeFi and NFT markets, Ethereum's application scenarios continue to expand, and investors believe that its long-term growth potential may surpass Bitcoin. Ethereum ETF is not only an investment tool, but also a convenient channel for participating in this ecological prosperity.

2. The technological dividends brought by the upgrade of Ethereum 2.0

Ethereum is transforming into a Proof of Stake (PoS) mechanism, improving network efficiency, reducing energy consumption through upgrades, and introducing sharding technology to improve scalability. These improvements significantly strengthen investor confidence, believing that Ethereum will evolve from a simple "cryptocurrency" to a "global decentralized computing platform" and its intrinsic value may be further released. In contrast, Bitcoin’s technology iteration is relatively slow, and the market has limited room for imagination about its future.

3. Differentiated allocation needs of institutional investors

The launch of Bitcoin ETFs has provided institutional investors with cryptocurrency exposure, while Ethereum ETFs have become the new option for their diversified portfolios. Many institutions believe that Bitcoin and Ethereum represent different asset classes: the former is anti-inflation “digital gold” and the latter is “digital oil” that drives the decentralized economy. Configuring Ethereum ETFs can help investors capture a wider range of market opportunities.

4. Relative friendly nature of the regulatory environment

After the US SEC approved Bitcoin ETF, its attitude towards Ethereum ETF has gradually become clear. Ethereum's PoS mechanism is considered to be more in line with environmental protection requirements and reduces regulatory resistance. In addition, the active communication between the Ethereum Foundation and regulators further reduced policy uncertainty and enhanced market confidence.

5. The driving force of market cycles and speculative sentiment

The current cryptocurrency market is in the early stages of a new bull market, and funds tend to flow to assets with greater growth potential. Ethereum's high elasticity in previous bull markets (such as the increase in 2021 exceeds Bitcoin) has attracted speculative funds. The launch of ETFs provides traditional investors with a low-threshold approach to participation, amplifying this effect.

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