21Shares compared Ethereum to Amazon in the 90s

What’s new? Crypto investment company 21Shares has compared the Ethereum blockchain to Amazon in the early 1990s, in the sense that Wall Street investors then also did not fully appreciate the potential of the company, which later became a $2 trillion capitalization e-commerce giant. Analyst Leena ElDeeb said that investors will only start investing large sums in Ethereum-based spot exchange-traded funds (ETFs) when the potential of the project becomes clear to them.

Material by Cointelegraph

What else is known? Ethereum was launched in 2015 as a platform for basic smart contracts, and it currently supports decentralized financial applications (DApps) with a total value locked (TVL) of over $140 billion.

“Just as Amazon evolved beyond books to redefine entire industries, Ethereum may also surprise us with revolutionary use cases that we can’t fully envision today,” the report says.

About 200 000 software engineers and researchers are currently engaged in the development of Ethereum. Although the project’s competition is Solana and other Layer 1 (L1) networks, Ethereum still dominates the world of decentralized exchanges (DEXs), loans and lending, stablecoins, and tokenized real-world asset (RWA) markets.

BlackRock, the world’s largest company with $11,5 trillion in assets under management, launched its tokenized fund BUIDL on Ethereum in March, which has already raised over $533 million. On November 1, Union Bank of Switzerland also launched its tokenized fund on Ethereum. Leading payment companies PayPal and Visa also use this blockchain.

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“Short-term investors are still “cautious” and will be less inclined to invest in spot Ether ETFs until there’s “greater clarity” about Ethereum’s potential and use cases. “[However,] we remain optimistic that as the market matures and Ethereum’s diverse applications grow, investor sentiment and adoption will follow a similar path of sustained growth,” the company write.

21Shares is an issuer of bitcoin and Ethereum-based spot ETFs, with products traded on the CBOE exchange. The bitcoin product under the ARKB ticker is launched in partnership with ARK Invest and manages $3,36 billion in assets, with cumulative inflows of $2,61 billion since its launch on January 11. As for the ETH fund, the product under the CETH ticker is managed independently by the company. It has raised $21,81 million since its launch on July 23.