Bitwise Invest CEO Why is Ethereum ETF underperforming Bitcoin ETF

News report:
The reasons for the poor performance of Ethereum ETFs include low investor activity in the summer, market consolidation, and the lack of understanding of Bitcoin by traditional investors. Despite this, related ETFs are still growing rapidly and have great potential in the future.
Written by: @HHorsley
Translation: Blockchain in Plain Language
Why haven’t Ethereum ETFs performed better?
This is a question I received at an event last week. Here are a few points I would like to share.
Out of the 525 ETFs launched in 2024, 13 are related to the top 25 cryptocurrencies such as Bitcoin and Ethereum. Including the MSTR options strategy ETF, there are a total of 14. The first four ETFs are all spot Bitcoin ETFs. Out of the seven cryptocurrency-related ETFs, five are Ethereum ETFs. I call this a “lack of demand” masterpiece.


First, how do we define success? iShares, Fidelity, and Bitwise ETFs are the fastest-growing new ETFs in the top 25 this year.
I believe there are three factors that have influenced their launch:
(1) Summer: For many investors, summer is a slow period. People pay attention but don’t invest much in new projects.
(2) Market: Bull markets always attract more attention. Bitcoin ETFs were launched during a Bitcoin uptrend, while Ethereum ETFs were launched during a consolidation market.
(3) Following Bitcoin ETFs: For many traditional investors, they needed some time to understand how to incorporate Bitcoin into their portfolios after the launch of Bitcoin ETFs. Ethereum was launched before this issue was resolved, making it difficult to shift attention.
Nevertheless, the three ETFs mentioned earlier are still the fastest-growing this year.
The story of Ethereum ETFs is just beginning.