Ethereum ETFs See Largest Outflows Since July: Is Waning Institutional Demand Hurting ETH?
25 Settembre 2024 - 5:30AM
NEWSBTC
Ethereum (ETH) exchange-traded funds (ETFs) posted the largest
outflows since July 2024, with $79.2 million leaving the market on
Monday, according to data from SoSoValue. Ethereum ETFs Continue To
Underperform Despite the highly-anticipated and strong start for
Ethereum ETFs in July 2024, the latest crypto-based ETFs have, thus
far, failed to sustain institutional interest. The latest data from
crypto ETF tracker SoSoValue shows that ETH ETFs witnessed a daily
total net outflow of $79.2 million on September 23. Related
Reading: Ethereum ETFs Debut: BlackRock Reigns With $260M Inflows,
Grayscale Bleeds Upon closer inspection, it appears that the bulk
of the outflows originated from Grayscale’s Ethereum Trust (ETHE),
which saw $80.6 million exiting the fund, bringing its cumulative
net total outflow to $2.85 billion. In contrast, Bitwise’s ETHW
posted net inflows of $1.3 million, propelling its cumulative net
total inflows to $320.3 million. It’s worth noting that the latest
exodus of funds from Ethereum ETFs is the fourth-largest in terms
of value since their inception on July 23, 2024. The total net
assets (TNA) of Ethereum ETFs stand at $7.2 billion, compared to
$57.9 billion for Bitcoin (BTC) ETFs. The continued
underperformance of Ethereum ETFs relative to Bitcoin ETFs does not
inspire much confidence in ETH’s future price potential. The
ETH/BTC trading pair provides clarity, as the ratio is currently
trading at levels it last witnessed way back in April 2021. ETH has
erased all the gains against BTC it recorded over the past three
years. The recent subpar performance of ETH against BTC isn’t
surprising since the latter recorded a new all-time-high (ATH)
value of $73,737 in March 2024, while the former has yet to breach
its ATH of $4,878 recorded in November 2021. Challenges may lie
ahead for ETH ETFs as speculation grows about the potential launch
of ETFs for competing cryptocurrencies, such as Ripple’s XRP.
Grayscale recently unveiled the first XRP trust in the U.S., paving
the way for a future potential XRP ETF. Analysts Confident About
Ethereum’s Comeback Ethereum’s challenges have not dampened the
optimism several digital assets analysts shared toward the
second-largest cryptocurrency by market cap. Near the launch of
Ethereum ETFs, research firm ASXN predicted that the funds could
attract monthly inflows ranging from $800 million to $1.2 billion.
Related Reading: Ethereum Poised For A Comeback Following Interest
Rate Cut: Steno Research Similarly, cryptocurrency exchange
Bitwise’s Matt Hougan recently dubbed Ethereum the “Microsoft of
blockchains,” indicating confidence in the leading smart contract
blockchain protocol. Hougan added that ETH could see a trend
reversal to the upside in Q4 2024. ETH trades at $2,610 at press
time, down 1.7% in the last 24 hours. Featured image from Unsplash,
Charts from Tradingview.com
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