Bit World News reported:
Source: Blockchain Knight
The launch of spot Ethereum ETFs did not meet the high expectations set by BTC ETFs, leading industry experts to analyze the underlying reasons.
According to Farside Investors’ data, all spot Ethereum ETFs have seen outflows of $463 million since their establishment on July 23. Among them, Grayscale’s ETHE saw outflows of $2.996 billion, BlackRock saw inflows of $1.258 billion, and Bitwise saw inflows of $321 million.
Hunter Horsley, CEO of Bitwise Asset Management, explained the factors that have influenced the performance of US spot Ethereum ETFs. Horsley summarized several factors that are unfavorable to the successful launch of spot Ethereum ETFs.
Firstly, the timing of launching Ethereum ETFs in the summer may dampen investors’ direct interest. This is because the summer is usually a slow season for investors who “pay attention but do not participate in many new projects.”
Secondly, it is also related to market conditions. BTC ETPs were launched during a BTC bull market, while Ethereum ETPs were launched during a sideways market. The lack of bullish momentum in Ethereum prices may be one of the reasons for the lackluster response.
In addition, the sequential launch of Ethereum ETFs after BTC ETFs may confuse investors who are still adapting to crypto assets. For many traditional investors, they need some time to figure out how to incorporate BTC after the ETPs are launched. Ethereum appeared before this issue was resolved, making it difficult for people to shift their attention to Ethereum.
Nate Geraci, President of ETF Store and Co-Founder of ETF Research Institute, emphasized the widespread success of crypto asset-related ETFs in 2024. “Out of the top 25 ETFs launched in 2024, 13 are related to BTC or ETH. If we include the MSTR option strategy ETF, it becomes 14. The top 4 ETFs are all spot BTC. 5 out of the top 7 are related to crypto assets. I call this performance ‘no demand.'”
In response, Christopher Perkins, President of CoinFund, stated that income-generating products can enhance attractiveness. “Horsley acknowledges the value of investments but downplays their direct impact on ETF performance. ET32 is developing rapidly in our European franchise.”
However, Horsley also added, “I don’t think the lack of tracking income is a big problem. Currently, most ETH is held directly, so it can be valued, but about two-thirds of ETH is not valued.” “But I agree it’s valuable. We have an ETH ETP in Europe, and it’s doing well in terms of growth.”
Dan Tapiero, industry veteran, founder, and CEO of 10THoldings, remains optimistic about the future of spot Ethereum ETFs. “Let’s wait a little longer. They will do well.”
