By Michael Scott
The two-month trading of spot Ether ETFs since unveiling on July 23 hit $13 billion in cumulative volume, suggesting weaker performance across all funds.
A roundup on the spot Ethereum exchange-traded funds (ETFs) reveals they accumulated $13 billion in cumulative volume since launching on July 23. For context, it has taken ETH ETFs two months to attain the $13B cumulative volume that the BTC ETFs attained in the initial seven days of trading.
While the ETH fund’s performance appears weak, the trading volumes at the onset aligned with the analysts’ prediction. The daily trading volumes appear to settle in a rhythm that hovers within $100M – $250M. Although the activity is not as explosive as earlier projected, the steady flow suggests institutional investors have sustained interest in the ETH ETFs.
The Grayscale Ethereum Trust (ETHE) emerges as the frontrunner with a 40% volume share. The $4.23 billion in assets under management (AUM) within the ETHE constitute nearly two-thirds of the entire $6.7 billion AUM across all nine ETFs.
The ETFs’ influence on the ETH price appears muted, contrary to the initial hype. The resulting lukewarm price action shows the anticipation was likely priced in the largest altcoin before the ETF unveiling.
Beyond the price movements, the importance of the ETH ETF is extensive. The spot Ether ETFs represent the landmark milestones towards regulatory validation and mainstream acceptance.
The on-chain activity sustained by the ETFS since July 23 is critical for the Ethereum miners’ longevity. Such are battling challenges of declining transaction fees since the post-merge era.
Ether ETFs Largest Net Outflows
The spot Ether ETFs have witnessed subpar performance during the dark days. Such replicated on Monday when the spot ether ETFs suffered $79.21M net outflows where Grayscale’s ETHE bled $80.5 million.
In contrast to the largest daily outflows suffered by Ether ETFs since July 29, the spot Bitcoin funds had modest $4.5M inflows. The Grayscales ETHE registered the largest outflow and the only fund to bleed on Monday, per Sosovalue data.
A glance into other funds reveals Bitwise ETHW earned net $1.34M inflow while others logged zero flows. The nine ETH ETFs realized $167.35M trading volume on September 23, an increment from the Friday’s $139.47M.
Bitcoin ETFs Saw Modest Inflows
The spot Bitcoin ETFs earned $4.56 million inflows on Monday to extend the inflow to a three-day streak. Fidelity led with the largest inflow of $24.93 million into the product.
Although the largest spot BTC ETF in net assets, BlackRock’s IBIT managed $11.54M net inflows. Such contrasts the misfortune that befell Grayscale (GBTC) on Monday to $8.42 million.
Grayscale’s GBTC was the blacksheep among the funds losing $40.33M after no activity in the previous two days. The Bitcoin ETFs saw their cumulative trading volume dip from $980.6M on Friday to $949.7M on Monday.
Mild Movement in Crypto Market
The Bitcoin price experienced 0.5% slight gain in the past 24 hours to change hands at $63,535.57 pushing the seven-day surge to 7% per CoinGecko. Despite maintaining the 7-day gain at 13.4% ETH saw 0.6% mild intra-day slip to change hands at $2,631.53.
Looking beyond the Federal Reserve rate cut is the US presidential election projected to bolster the crypto ETF landscape. Recently, both Republican and Democrat candidates suggest ponteital to usher a crypto-friendly regulatory context.
As the crypto-affiliated space evolves, the concern looming large in the community is whether Ethereum ETFs could replicate the success realized by Bitcoin counterparts. Besides, the crypto industry questions whether ETH ETFs will carve out a unique path within the institutional crypto investment space.
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