A survey by Grayscale and The Harris Poll shows that the U.S. Securities and Exchange Commission’s (SEC) approval of Ethereum (ETH) exchange-traded funds (ETFs) will likely lead to an increase in U.S. investment in the digital asset.
While the long-term effectiveness of these ETFs is uncertain, the survey suggests that their introduction will significantly accelerate the development of the cryptocurrency market and its mass adoption.
Ethereum ETF Will Drive Adoption
The survey shows that nearly one in four likely voters would consider investing in Ethereum if an ETF-based product were approved. This approval would increase their interest in Ethereum and other crypto assets beyond Bitcoin.
Grayscale’s results support analysts’ predictions about the potential success of the Ethereum ETF. Quinn Thompson, founder of Leker Capital, cited Neil Osborne as saying that the ETH ETF is a bridge for traditional investors who don’t have access to blockchain and cryptocurrencies beyond digital gold.
“By investing in Ethereum, you get access to stablecoins/payments, tokenization, DeFi, digital art/NFTs, infrastructure/staking/layer 2 scaling. All of these new technologies are built on Ethereum and pay fees for their use and activity, which accrues as revenue for the ETH network and token,” Quinn explained.
This prospect has many market experts expecting significant investment inflows once trading begins. Charles Yu, vice president of research at Galaxy Digital, estimates that ETH ETFs could attract up to $1 billion in monthly inflows within the first five months. Similarly, Bitwise CIO Matthew Hougan predicted $15 billion in inflows within the first 18 months.
Despite the potential for great success, 25% of Grayscale respondents said that the approval of the ETF would not affect their investment interest. The survey also found that a significant portion of the population remains unfamiliar with the Ethereum spot ETF. It shows that about 43% of U.S. voters were unaware of it.
Meanwhile, a poll shows that cryptocurrency is becoming an increasingly important topic for American voters. According to the poll, a third of potential American voters have become more open to cryptocurrency since the beginning of this year, and 47% of them believe that cryptocurrency will eventually end up in their investment portfolios.
