Spot Ethereum (ETH) exchange-traded fund (ETF) inflows have surpassed $2 billion in nearly four weeks, excluding Grayscale’s ETHE outflows of nearly $2.5 billion, according to Farside Investors’ data.
Nate Geraci, CEO of ETF Store highlighted that if this cumulative value is considered within the framework of a single ETF, it would be equivalent to the fourth largest ETF launch to date.
The other three ETF launches surpassing Ethereum ETFs combined are all spot Bitcoin (BTC) ETFs: BlackRock’s IBIT, Fidelity’s FBTC, and ARK 21Shares’ ARKB.
Geraci added:
“iShares Ethereum ETF alone = one of the top 7 ETFs launched.”
Eric Balchunas, senior ETF analyst at Bloomberg common Year-to-date ETF flows have reached $911 billion globally. The $17 billion in net flows recorded by U.S.-traded cash crypto ETFs represent nearly 2% of total global flows.
It is worth noting that IBIT is the third largest ETF in terms of inflows, approaching $20.5 billion. FBTC also ranks among the largest funds, with nearly $10 billion in inflows.
Ethereum ETFs Lagging Behind
Despite crossing the $2 billion mark in cumulative inflows, the performance of spot Ethereum ETFs still lags behind their Bitcoin counterparts.
Bitfinex analysts attribute this to Ethereum’s overall weak performance in recent weeks, with the cryptocurrency falling 40% over the past month.
Jump Crypto, Wintermute, and Flow Traders have sold a total of 130,000 ETH since the launch of the Ethereum ETFs. Additionally, the macroeconomic landscape has recently been shaken by the sharp rise in interest rates in Japan, which has dampened risk appetite in the market.
Aurelie Barthere, Senior Research Analyst at Nansen, also shared with CryptoSlate that the cryptocurrency market sell-off in March resulted in significant losses, especially for traders engaged in multiple cryptocurrency narratives.
Additionally, a second wave of selling between July and August highlighted a growing correlation with equities. This further increased pressure on Ether amid solid but slowing US growth and elevated valuations of traditional risk assets like US stocks.
Mentioned in this article
Gino Matos
Gino Matos is a law graduate and seasoned journalist with six years of experience in the crypto sector. His expertise focuses mainly on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
Assad Jafri
AJ, a passionate journalist since the 2011 Arab Spring in Yemen, has honed his skills around the world for over a decade. Specializing in financial journalism, he now focuses on reporting on cryptocurrencies.
