In the first month of listing in the U.S., the spot Ethereum ETF recorded a total of $476 million in negative net flows. Obviously, the outflow caused by the listing of Grayscale ETHE was not overcome.
Eric Balchunas, a senior ETF analyst at Bloomberg, expressed some personal views on this: "The 9 newly listed spot BTC ETFs have good momentum, and their inflows are enough to seriously make up for the large-scale outflow of GBTC."
This performance of the spot Ethereum ETF is in stark contrast to the BTC ETF at the time, which received $5 billion in inflows in a similar period of time after its launch.
Analysts attributed this gap to several factors: BTC has the so-called "first-mover advantage", Ethereum ETF lacks a spot option, and Ethereum market liquidity is low, all of which have greatly reduced the attractiveness of ETFs to institutional investors.
Despite some challenges, some Ethereum ETFs did show signs of recovery at the end of last month.
Balchunas added that outflows won’t last forever, and inflows to newly launched ETFs will eventually catch up with outflows.
Grayscale’s ETHE lost nearly $2.6 billion in its first month, according to Farside Investors. The move was expected, as its BTC Trust fund, GBTC, saw the same thing happen.
While inflows to other Ethereum ETFs weren’t enough to ensure a positive monthly net flow, the amount of cash flowing into these Crypto products is still considerable.
BlackRock’s ETHA saw inflows of over $1 billion, making it the seventh-largest ETF so far this year.
Fidelity’s FETH also recorded significant inflows of around $393 million, making it the 19th-largest ETF so far this year.
Bitwise’s ETHW, the third and final Ethereum ETF to trade in the U.S., managed to capture over $300 million in inflows in its first year.
Also, despite Grayscale’s ETHE seeing significant outflows, its Ethereum Mini Trust Fund ETH managed to capture nearly $240 million in inflows.
If the total inflows of Ethereum ETFs traded in the U.S. were considered as one product, it would be equivalent to the fourth-largest ETF by 2024.
Solana's rollercoaster journey, influenced by Sam Bankman-Fried's advocacy, thrived until FTX's collapse in 2022. Despite a resilient 2023 recovery, lingering concerns surround FTX's massive Solana holdings, questioning the cryptocurrency's stability in the ever-changing crypto landscape.
SanyaBarry Silbert, founder and chief of Digital Currency Group (DCG), has revealed that the company owes $2B to its subsidiaries and external creditors.
BeincryptoCRO is trading above long-term support at $0.06. The weekly and daily RSI are bearish.
BeincryptoThe recent collapse of cryptocurrency exchange FTX has spawned a contagion that’s spreading throughout the industry.
decryptLawmakers sounded off on the need for better investor protections after a chaotic week.
With some areas of the blockchain space showing signs of a potential bottom, July showed that the market remains in a cautionary state.
CointelegraphThe MakerDAO decided to cut off Aave from its direct deposit module as a safeguard in light of the possibility that Celsius folds and crashes the price of stETH.
CointelegraphCrypto lending firm Voyager posted an update on its “restructuring process” and how it will impact its crypto users. Last ...
BitcoinistYield generation app Stablegains is facing a lawsuit after losing around $44 million worth of user funds in the Terra collapse when it previously said it allocated funds “across a number of stablecoins”.
CointelegraphCryptocurrency markets have been under pressure over the past week following the collapse of the third-largest stablecoin terraUSD (UST), according to a report from Citigroup on May 13, according to coindesk.
Ftftx