Oh dear, it seems that most investors in those oh-so-glamorous spot Ether exchange-traded funds from BlackRock and Fidelity are feeling a bit like they’ve just stepped into a swimming pool with no water. According to the ever-so-reliable crypto analytics firm Glassnode, they’re facing significant losses. Who knew investing could be so… watery? 💦
“The average investor in the BlackRock and Fidelity Ethereum ETFs are now substantially underwater on their position, holding an unrealized loss of approximately -21% on average,” Glassnode reported on May 29. Ouch! That’s like finding out your favorite pair of shoes is two sizes too small after you’ve already bought them. 😩
As of now, Ether (ETH) is trading at a mere $2,601. But wait! BlackRock’s spot Ether ETF has a cost basis of $3,300, while Fidelity’s is even more extravagant at $3,500. Talk about a bad hair day for your portfolio! 💁♀️
Funds Dropped on Trump Tariffs
The last time Ether was strutting its stuff above $3,000 was back on February 2, before it took a nosedive after US President Donald Trump decided to play Santa with import tariffs on goods from China, Canada, and Mexico. 🎅
“We can see that net outflows begin to accelerate when the spot price dropped below this average ETF investor cost-basis level in August 2024 and January and March of 2025,” the firm added. Because who doesn’t love a good panic sell? 🙃
Ether hit its yearly low of $1,472 on April 9, the same day Trump’s sweeping global tariffs came into effect. But hold your horses! Ether has climbed a whopping 44.25% over the past month, and spot Ether ETFs have recorded nine consecutive days of inflows totaling $435.6 million since May 16. It’s like watching a soap opera—just when you think it’s over, there’s a plot twist! 📈
Some analysts are even daring to predict a more positive trend for the crypto market after a US federal court blocked most of Trump’s tariffs on May 28. Fingers crossed! 🤞
Since the launch of spot Ether ETFs in the US back in July 2024, they’ve raked in a staggering $2.94 billion in total inflows. On their launch day, Ether was trading at around $3,536. Talk about a rollercoaster ride! 🎢
Meanwhile, Glassnode suggested that the ETFs have had about as much impact on Ether’s spot price as a feather on a scale. “The Ethereum ETFs initially accounted for just ±1.5% of the trade volume in spot markets, suggesting a relatively lukewarm reception on launch,” it said. Not exactly a standing ovation, is it? 👏
Glassnode noted that the ETFs experienced a brief moment of glory in November 2024, where the measure increased to over 2.5%. This coincided with Trump winning the US presidential election, and the entire crypto market decided to throw a party that saw Ether reach $4,007 on December 8. 🎉
But alas, the measure has since declined back toward 1.5%, as Glassnode pointed out. It’s like the party ended, and everyone went home. 🏠
On March 20 at the Digital Asset Summit, BlackRock’s head of digital assets, Robbie Mitchnick, noted that the spot Ether ETF is “less perfect” without staking. Well, that’s just peachy! 🍑
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2025-05-30 06:19