As a seasoned crypto investor with a decade of experience under my belt, I can’t help but feel a sense of deja vu when I see Ethereum ETFs continuing to underperform. I remember the hype surrounding their launch back in July 2024, and while they started strong, it seems we’ve hit a roadblock. The latest outflow of $79.2 million on September 23 is just another nail in the coffin for Ethereum ETFs, which now stand at a total net asset value of $7.2 billion compared to Bitcoin ETFs’ $57.9 billion.
On Monday, there was a significant withdrawal of approximately $79.2 million from Ethereum-based exchange-traded funds (ETFs), marking the largest outflows since July 2024, as per data provided by SoSoValue.
Ethereum ETFs Continue To Underperform
Although Ethereum ETFs had a promising and robust beginning in July 2024, the recently launched cryptocurrency-based ETFs have struggled to maintain institutional interest so far. The most recent data from crypto ETF tracker SoSoValue indicates that Ethereum ETFs experienced a total net outflow of $79.2 million on September 23.
Upon further examination, it seems that most withdrawals stemmed from Grayscale’s Ethereum Trust (ETHE), with an outflow of approximately $80.6 million recorded, raising the overall net outflow to a staggering $2.85 billion. Conversely, Bitwise’s ETHW experienced inflows worth $1.3 million, pushing its total net inflows to an impressive $320.3 million.
It’s important to mention that the recent withdrawal of funds from Ethereum-based Exchange Traded Funds (ETFs) represents one of the largest such events in terms of value since their launch on July 23, 2024. Currently, the combined net worth of these Ethereum ETFs amounts to approximately $7.2 billion, while Bitcoin ETFs boast a significantly larger total net assets (TNA) of around $57.9 billion.
The persistent poor performance of Ethereum ETFs compared to Bitcoin ETFs isn’t giving us much hope for Ethereum’s future price growth prospects. However, the Ethereum-Bitcoin trading pair gives us a clearer picture since the ratio is now at levels not seen since April 2021. Regrettably, Ethereum has wiped out all the gains it made against Bitcoin over the past three years.
It’s not shocking that ETH hasn’t been doing so well compared to BTC lately, considering BTC reached a new peak price of $73,737 in March 2024, while ETH is still below its previous high of $4,878 from November 2021.
Possible obstacles could surface for ETH Exchange-Traded Funds (ETFs), given the escalating chatter about the prospective introduction of ETFs based on rival cryptocurrencies, such as Ripple‘s XRP. Notably, Grayscale has recently introduced the first U.S.-based XRP trust, which could hint at a potential future XRP ETF.
Analysts Confident About Ethereum’s Comeback
Despite the hurdles Ethereum faces, there remains a high level of enthusiasm among digital asset analysts regarding the second-largest cryptocurrency by market capitalization. Prior to the introduction of Ethereum ETFs, research firm ASXN forecasted that these funds might draw in monthly investments ranging from $800 million to $1.2 billion.
In a similar vein, financial expert Matt Hougan from Bitwise has referred to Ethereum as the “Microsoft of blockchains,” suggesting his faith in the dominant smart contract platform. Furthermore, he anticipates a potential bullish trend for ETH starting Q4 2024. Currently, Ethereum is trading at approximately $2,610, marking a 1.7% decline over the past day.
Read More
Sorry. No data so far.
2024-09-25 06:40