The Launch of Ethereum ETFs: A Slow Start
Several months after receiving approval from the SEC, the spot Ethereum ETFs officially launched last Tuesday. However, the initial results have been disappointing, drawing comparisons to the spot Bitcoin ETF launch earlier this year.
ETH ETFs Vs. BTC ETFs
CryptoPotato reported that the nine spot Ethereum ETFs had a strong first day, attracting over $106 million in net flows. While the Grayscale fund (ETHE) experienced significant withdrawals of nearly $500 million, other ETFs like ETHA and ETHW managed to offset the losses.
However, the following days told a different story. Instead of seeing inflows, daily numbers began to turn negative. On July 24, $133.3 million was withdrawn, followed by $152.4 million on July 25, and $162.7 million on July 26.
This concerning trend shows a growing amount of outflows, with Grayscale’s ETHE alone losing $326.9 million, $346.
Spot Ethereum ETFs Experience Massive Withdrawals
After the first four days of trading, spot Ethereum ETFs have seen significant withdrawals amounting to $341.8 million. BlackRock’s ETHA and Fidelity’s FETH have also experienced diminishing demand, unable to offset the massive outflows from ETHE.
Spot Bitcoin ETFs Inflows Contrast with Ethereum
On the other hand, spot Bitcoin ETFs have had a much more successful start. The launch date saw over $650 million in inflows, followed by $203 million on the second day, and $453.8 million on the fourth day. Only minor outflows were observed on the third day amounting to $52.7 million. In total, net flows for Bitcoin ETFs reached close to $1.260 billion in just four days, showcasing a stark difference compared to Ethereum ETFs.
Price Performance Comparison
Despite the noticeable difference in demand between the two largest cryptocurrencies, the price performances of the underlying assets have shown varying trends in the first few days of trading.
Bitcoin and Ethereum Prices Post-ETF Launch
Following the introduction of their ETFs, there was an unexpected turn of events in the cryptocurrency market. Despite over $1.250 billion flowing into the BTC ecosystem, the price of bitcoin did not experience the anticipated surge. Initially rising from $45,000 to $49,000 after the ETFs were launched on January 11, the price of bitcoin then dropped to $41,300 by the fourth day.
On the other hand, Ethereum (ETH) saw a different trajectory. Starting with a price decrease from $3,500 to $3,000, which was somewhat expected due to the outflows, ETH managed to bounce back and is currently trading close to $3,300. Despite significant outflows, ether is down by only 6.5% at the moment, while bitcoin experienced a 16% drop despite the success of the ETFs in their early days.
Bitcoin Price Chart – July 27, 2024
Source: TradingView
Ethereum Price Chart – July 27, 2024
Source: TradingView
DFi Exchange: Earn Up to $2,888 Welcome Bonus!
Are you looking to maximize your trading profits? Look no further than DFi Exchange, where you can earn up to $2,888 as a welcome bonus! Take advantage of this incredible offer by registering through the provided link and opening a 100 USDT-M position for free.
DFi Exchange offers a user-friendly platform, low trading fees, and a wide range of trading pairs to choose from. Whether you are a beginner or an experienced trader, DFi Exchange has everything you need to succeed in the cryptocurrency market.
Don’t miss out on this opportunity to boost your trading account with a generous welcome bonus. Sign up with DFi Exchange today and start trading with confidence!