Coin World News Report:
Source: Blockchain Knight
The launch of spot Ethereum ETFs did not meet the high expectations set by BTC ETFs, leading industry experts to analyze the fundamental reasons behind it.
According to data from Farside Investors, since its establishment on July 23, spot Ethereum ETFs have seen a total outflow of $463 million. Among them, Grayscale’s ETHE has seen an outflow of $2.996 billion, BlackRock has seen an inflow of $1.258 billion, and Bitwise has seen an inflow of $321 million.
Hunter Horsley, CEO of Bitwise Asset Management, explained the factors that affect the performance of spot Ethereum ETFs on X. Horsley summarized several factors that are unfavorable for the successful launch of spot Ethereum ETFs.
First, launching Ethereum ETFs in the summer may suppress investors’ direct interest. Because summer is usually a slow season for investors, they “pay attention to but do not participate in many new projects.”
Second, it is also related to market conditions. BTC ETPs were launched during the rise of BTC, while Ethereum ETPs were launched during a sideways market. The lack of bullish momentum in Ethereum’s price may be one of the reasons for the lackluster response.
In addition, the successive launch of Ethereum ETFs after BTC ETFs may leave investors who are still adapting to crypto assets confused. For many traditional investors, they need some time to figure out how to incorporate BTC after the launch of ETPs. Ethereum appeared before this issue was resolved, making it difficult for people to shift their attention to Ethereum.
Nate Geraci, President of ETF Store and Co-founder of ETF Research Institute, emphasized the broad success of crypto asset-related ETFs in 2024. “Out of the 525 ETFs launched in 2024, 13 of the top 25 are related to BTC or ETH.” “If we include the MSTR options strategy ETF, it would be 14. The top four ETFs are all spot BTC. Five out of the top seven are related to crypto assets. I call this performance ‘no demand’.”
In response, Christopher Perkins, President of CoinFund, stated that income-generating products can enhance attractiveness. “Horsley acknowledges the value of investment but downplays its direct impact on ETF performance. ET32 has developed rapidly in our European franchise.”
However, Horsley also added, “I don’t think the lack of tracking income is a big issue. Currently, most ETH is held directly, so it can be staked, but about 2/3 of ETH is not staked.” “But I agree it has value. We have an ETH ETP in Europe, and its growth is good.”
Dan Tapiero, industry veteran and founder/CEO of 10THoldings, remains optimistic about the future of spot Ethereum ETFs. “Let’s wait a little longer. They will do well.”
