As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends. The recent performance of Ethereum ETFs has been nothing short of intriguing, to say the least. While Bitcoin ETFs continue to thrive, their Ethereum counterparts have been struggling, much like a rookie trying to keep up with a veteran in a high-stakes poker game.
As a researcher, I’m noting an encouraging development: on Tuesday, Ethereum spot exchange-traded funds (ETFs) experienced a noteworthy uptick in performance for the first time in almost two months. These crypto-backed investment vehicles have been moving rather slowly throughout September and have yet to captivate investors during this market surge.
Ethereum ETFs See Best Day Since August
Over the past seven days, Ethereum (ETH) ETFs experienced their sixth straight week of decreased investments, amounting to $26.26 million in outflows. Conversely, Bitcoin (BTC) ETFs maintained a positive trend, recording inflows for the second week in a row. Interestingly, according to CoinShares’ weekly report, Ethereum-based products stood out as exceptions among the broader market.
Over the past month, the performance of our investment products has been lackluster, primarily because of the persistent heavy withdrawals from Grayscale Ethereum Trust (ETHE) and low trading volumes in the recently launched ETFs.
According to Bitcoinist’s reports, there were no investments flowing in or out from any issuer for both August 30th and September 2nd. This pattern has not been observed since the debut of U.S. spot crypto-backed ETFs back in January.
As an analyst, I’ve noticed that the trading volume for ETH ETFs has been similar to the levels prior to their launch, constituting approximately 15% of the volume recorded during their initial week in the U.S. market.
As the new week began, we saw a discouraging trend persist in terms of performance. On Monday alone, ETH-related products experienced one of their poorest days since their debut in late July, resulting in an outflow of approximately $79.3 million.
Today marked one of the top five heaviest outflows for Ethereum Exchange-Traded Funds (ETFs) since their inception, and it was their poorest performing day since July 31. With most funds remaining idle, only ETHW saw small inflows of $1.3 million, whereas ETHE experienced significant outflows totaling $80.6 million.
Conversely, Mads Eberhardt, a senior analyst at Steno Research, pointed out that US Ethereum spot ETFs experienced one of their largest net outflows on Tuesday, but this trend reversed on Wednesday with a $62 million inflow – a significant recovery from the substantial outflows seen on Monday.
Blackock’s ETHA fund attracted the most inflows with approximately $59.3 million, while VanEck’s ETHV and Invesco’s QETH experienced moderate inflows of around $1.9 and $1.3 million respectively. No outflows were recorded for any issuer, including Grayscale’s ETHE. This marks one of their strongest days since July. Furthermore, it was the best day for spot ETH ETFs, particularly for ETHA, since August 6.
SEC Delays ETH ETFs Options Decision
On Tuesday, it was disclosed that the U.S. Securities and Exchange Commission (SEC) has pushed back the date for making a decision regarding Nasdaq International Securities Exchange’s (ISE) proposed adjustment to their rules, which would allow them to list and trade options based on Blackrock’s ETHA.
In a similar vein, the U.S. regulator held off on making a decision about NYSE American LCC’s proposed adjustment to trade and list options for Bitwise’s ETHW and Grayscale’s ETHE, as well as Grayscale’s Mini Trust (ETH).
The deadlines have been pushed back to mid-November. Specifically, Nasdaq ISE’s ruling is scheduled for November 10, while NYSE American LCC’s decision is set for November 11. This move comes after the agency recently gave the green light for options trading involving BlackRock’s Bitcoin Trust (IBIT) on Nasdaq.
According to Bloomberg analyst Eric Balchunas, the approval was hailed as a significant triumph for Bitcoin Spot ETFs. He believes that this development will entice more investors and enhance liquidity. If a similar event happens for Ethereum Spot ETFs, it could potentially increase the allure of crypto-based investment products among institutional investors.
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2024-09-26 06:42