News Report:
The reasons for the underperformance of Ethereum ETF include low investor activity in the summer, market consolidation, and the unmet demand of traditional investors for understanding Bitcoin. Despite this, related ETFs are still growing rapidly and have a promising future.
Author: @HHorsley
Translation: Blockchain in Plain Language
Why hasn’t the performance of Ethereum ETF been better?
This was a question I received at an event last week. Here are a few points I’d like to share.
Among the 525 ETFs launched in 2024, 13 of them are related to the top 25 cryptocurrencies like Bitcoin or Ethereum. If we include the MSTR options strategy ETF, the total is 14. The first four ETFs are all spot Bitcoin. Among the seven cryptocurrency-related ETFs, five of them are. I call this “no (market) demand.”
Firstly, 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: The summer is a slow period for many investors. People pay attention, but they don’t invest too much in new projects.
(2) Market: Bull markets always attract more attention. Bitcoin ETFs were launched during a Bitcoin rally, while Ethereum ETFs were launched in a consolidating market.
(3) Following Bitcoin ETFs: For many traditional investors, they need 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 above are still the fastest growing this year.
The story of Ethereum ETF is just beginning.
