Ethereum ETFs in the US Garner $2 Billion in Inflows
Spot Ethereum (ETH) exchange-traded funds (ETFs) have seen inflows exceeding $2 billion in nearly four weeks, excluding Grayscale’s ETHE outflows of almost $2.5 billion, according to Farside Investors’ data.
Nate Geraci, CEO of ETF Store, pointed out that if these combined values were consolidated into a single ETF, it would rank as the fourth-largest ETF launch to date.
The top three ETF launches surpassing the cumulative Ethereum ETFs are all spot Bitcoin (BTC) ETFs: BlackRock’s IBIT, Fidelity’s FBTC, and ARK Invest’s 21Shares ARKB.
Bloomberg’s senior ETF analyst, Eric Balchunas, highlighted that year-to-date flows for ETFs have globally reached $911 billion. The $17 billion in net flows from US-traded spot crypto ETFs represent nearly 2% of the total global flows.
IBIT stands as the third-largest ETF by inflows, nearing $20.5 billion, while FBTC has also garnered substantial funds with almost $10 billion in inflows.
Despite surpassing the $2 billion mark in cumulative inflows, the performance of spot Ethereum ETFs still lags behind their Bitcoin counterparts. This underperformance is attributed to Ethereum’s weak performance over recent weeks, with the crypto experiencing a 40% decline in the past month.
Jump Crypto, Wintermute, and Flow Traders collectively sold 130,000 ETH since the launch of Ethereum ETFs. Additionally, a significant sell-off in the crypto market in March resulted in substantial realized losses, particularly for traders involved in various crypto narratives.
Moreover, a subsequent sell-off between July and August highlighted a growing correlation with equities, further pressuring Ether amid steady but slowing US growth and stretched valuations in traditional risk assets like US equities.
In conclusion, while Ethereum ETFs have seen significant inflows, they continue to face challenges in performance compared to Bitcoin ETFs due to recent market dynamics and macroeconomic factors impacting the crypto market.
