Recently, the fund led by well-known investor Cathie Wood decided to withdraw its Ethereum ETF application, attracting market attention. The reasons behind this move are worth exploring in depth.

Currently, the competition in the Bitcoin ETF market is fierce, with generally low rates, mostly between 0.19% and 0.25%. Taking a top-ranked Bitcoin ETF as an example, the annual management fee revenue is about 7 million USD, but the costs are also in the same magnitude. This means that even for Bitcoin ETFs, the profit margin is very limited.
For smaller market cap cryptocurrencies, launching ETF products faces greater challenges. Taking Solana (SOL) as an example, its market cap is only about 5% of Bitcoin's. To make the SOL ETF break even, it needs to manage approximately 20 million SOL, which is equivalent to 4.5% of the theoretical circulating supply of SOL. In contrast, the largest Bitcoin ETF currently only holds 1.5% of all Bitcoin in circulation.