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Wall Street remains lukewarm on Ethereum, as investors seem mostly unaware of its long-term potential, resembling Amazon’s early days before the e-commerce giant grew into a $2 trillion powerhouse, according to 21Shares crypto asset manager’s research analyst.

Ethereum-focused exchange-traded funds (ETFs) hit the market back in July, yet their performance pales compared to the enthusiasm around Bitcoin ETFs. Ethereum’s big moment may be coming, but it’s waiting for mainstream investors to recognize its utility beyond crypto circles.

Ethereum’s Complexity Mirrors Amazon’s 90s Roots

Leena ElDeeb, Research Analyst at 21Shares, stated that institutional inflows into Ether ETFs hinge on investors finally understanding Ethereum’s expansive possibilities. She compared Ethereum’s complexity to Amazon’s start as an online bookstore, a venture few expected to revolutionize global commerce.

“Ethereum’s like Amazon back then — a lot of potential but harder to grasp,” she said. While Amazon evolved from books to reshape industries, Ethereum, which launched in 2015 with basic smart contracts, now backs over $140 billion in decentralized finance (DeFi) projects.

Federico Brokate, VP at 21Shares’ U.S. unit, added, “Amazon’s journey redefined retail, digital services, and cloud computing. Ethereum may chart a similar course, with use cases yet to be realized.”

200,000 Developers Power Ethereum’s Ecosystem

While Ethereum’s market cap lags behind Amazon’s $2 trillion behemoth, Brokate pointed out a major difference: Ethereum’s vast developer network. With over 200,000 developers — researchers, engineers, protocol designers — Ethereum’s ecosystem is unparalleled, unlike Amazon’s staff of 7,600 in the late 1990s.

“Amazon now employs over 1.5 million people. That growth could well be mirrored in Ethereum’s developer community,” Brokate observed. Ethereum has survived competition from networks like Solana, keeping a stronghold on decentralized exchanges, lending protocols, stablecoins, and real-world assets.

BlackRock, Visa, and PayPal Bet on Ethereum, but Investors Remain Cautious

Ethereum has already attracted giants like BlackRock, Visa, and PayPal, all of whom are building on its blockchain. BlackRock recently tokenized $533 million in money market funds on Ethereum, while Union Bank of Switzerland launched a tokenized fund on November 1.

Yet, many investors hold off from Ether ETFs, still skeptical of Ethereum’s scalability and unclear future. Investors appear cautious, possibly held back by factors such as SEC restrictions on staking and the U.S. market’s ongoing digestion of Bitcoin ETFs.

Sygnum Bank’s Head of Research, Katalin Tischhauser, suggests this caution could ease as investors re-evaluate Ethereum’s value proposition over the next 12 months. Spot Ether ETFs have seen only a fraction of Bitcoin ETFs’ inflows, but Tischhauser isn’t worried, noting traditional investors “need time.”