As a seasoned researcher with extensive experience in the cryptocurrency market, I have closely monitored the recent developments in Ethereum exchange-traded funds (ETFs). After analyzing the data from Farside Investors, I cannot help but feel a sense of disappointment.
On their second day of trading, Ethereum exchange-traded funds (ETFs) recorded over $133 million in redemptions, as indicated by Farside Investors’ data.
FETH from Fidelity’s portfolio saw a remarkable inflow of approximately $74.5 million, leading the pack. Grayscale’s small ETF followed closely behind with about $45.9 million in new investments.
BlackRock’s ETHA recorded a modest $17.4 worth of inflows.
Despite the significant inflows, Grayscale’s ETHE still faced a massive loss of $326 million on Wednesday as outflows outpaced inflows.
The outflows are expected due to ETHE’s huge 2.5% fee.
Based on the information from U.Today, Ethereum ETFs experienced strong initial inflows upon their debut. Nevertheless, it appears that these financial products may be encountering challenges in sustaining this momentum.
The price of Ethereum is down as much as 7.3% over the past 24 hours amid the massive sell-off.
The value of the cryptocurrency has taken a hit due to two major setbacks: weak inflows into ETFs and the significant decline in the US stock market, which caused the Nasdaq-100 index to drop by 3.6%. Tesla’s stock suffered even more severely, dropping over 12% following disappointing earnings reports.
Bitcoin dominance grows
During this period, Bitcoin’s prominence has climbed to 56% – its greatest increase in over a month – defying the excitement generated by the debut of Ether Exchange-Traded Funds (ETFs).
The ETH/BTC pair is down 6% in just two days, and it is likely to continue underperforming if net outflows persist.
In contrast, Bitcoin ETFs, introduced in early January, attracted a total of $44.5 million in investments on Wednesday. Among them, BlackRock’s IBIT was the top performer with an inflow of $60 million. Conversely, Grayscale’s GBTC experienced outflows amounting to $26.2 million.
In their second day of operation, Bitcoin ETFs attracted approximately $200 million in investments, even as Grayscale’s GBTC faced selling pressure.
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2024-07-25 08:44