21Shares investment fund managers suggested that Ethereum has future growth potential similar to Amazon’s rise in the 1990s. The company’s research analyst, Leena Eldeeb, emphasized the complexity of the leading altcoin Ethereum in an interview with CoinTelegraph and said, “Ethereum promises complex and wide potential in terms of usage areas. “This situation can be compared to Amazon’s journey from an online store that only sells books to a huge e-commerce and cloud computing giant,” he said.
The potential of the leading altcoin project is in the focus of 21 Shares
Referring to the early days of Amazon, Frederico Brokate, vice president and business unit manager of 21Shares, reminded that the company started with selling books over the internet and has become a technology giant today. Brokate believes that Ethereum can also surprise investors with “revolutionary use cases” that are not yet clearly visible but will emerge in the future. The fact that the number of developers currently working on Ethereum is quite high is one of the important factors supporting this potential. While Amazon employed approximately 7,600 people in the late 1990s, there are more than 200,000 active developers on the Ethereum network today.
Ethereum’s adoption rate by institutional investors is increasing. According to DeFiLlama data, more than $47.7 billion in assets are currently locked on the Ethereum network. BlackRock, one of the world’s largest asset management companies, has tokenized more than half a billion dollars of money market funds on the leading altcoin Ethereum network. In addition, Union Bank of Switzerland (UBS), one of Switzerland’s leading financial institutions, also launched its own tokenized fund on Ethereum as of November 1.
There is great interest in Spot Ethereum ETFs
Although the institutional adoption rate has increased, spot Ethereum ETFs (Exchange Traded Funds) launched in early 2023 have not received the expected attention. Newly created funds in the US market experienced a total outflow of $478.9 million. Although 21Shares has $3.5 billion worth of assets under management, it explains this weak performance in Ethereum ETFs as the effect of investors acting “cautiously” due to the uncertainty in the market. The company’s analysts remain optimistic that Ethereum’s diverse use cases will increase as markets mature, which will positively impact investor sentiment and adoption.
Ethereum continues to push the boundaries of blockchain technology, not only with DeFi applications, but also by providing infrastructure for many different areas such as NFT, metaverse projects, gaming industry and tokenized assets. Experts suggest that Ethereum will not only be limited to its current use cases, but may offer “unpredictable and innovative” solutions over time. This creates a wide potential for investors.
As we reported as Kriptokoin.com, 21Shares entered the US market with two new crypto index funds. Although the company thinks Ethereum is a promising asset, it likens the current situation to the uncertainty of early Amazon. Most investors agree that it will take some more time for Ethereum to gain wide acceptance and its use cases to become clear. 21Shares believes that Ethereum will be in demand as the market develops and investor interest will increase over time.
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