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Source: Blockchain Knight
In the first month of spot Ethereum ETF listing in the United States, it recorded a total of US$476 million negative net traffic.Obviously, the capital outflow caused by the listing of Grayscale ETHE has not been overcome..
Eric Balchunas, a senior ETF analyst at Bloomberg, has expressed some personal opinions on this:The 9 newly listed spot BTC ETFs have good momentum, and their inflows are enough to seriously compensate for the large-scale outflow of GBTC.”
This performance of the spot Ethereum ETF is in sharp contrast to the BTC ETF at that time, which received $5 billion inflows in about the same time since its launch.
Analysts attribute this gap to several factors: BTC has the so-called “first-mover advantage”, Ethereum ETFs lack a market-focused option, and low liquidity in the Ethereum market, etc., which all make ETFs attractive to institutional investors.The force has dropped significantly.
Despite some challenges, some Ethereum ETFs did show signs of recovery at the end of last month.
Balchunas added that outflows will not last forever and that inflows from newly launched ETFs will eventually catch up with outflows.
According to Farside Investors, Grayscale’s ETHE dropped by nearly $2.6 billion in the first month.This move was expected, as the same happened to its BTC trust GBTC.
While the inflows of other Ethereum ETFs are not sufficient to ensure positive monthly net traffic, the amount of cash flowing to these Crypto products is quite considerable.
BlackRock’s ETHA inflow exceeded $1 billion, becoming the seventh largest ETF so far this year.
Fidelity’s FETH also recorded a massive inflow of about $393 million, making it the 19th largest ETF so far this year.
Bitwise’s ETHW is the third and last Ethereum ETF to trade in the U.S., successfully captured more than $300 million inflows in the first year.
In addition, despite the massive outflow of ETHE funds from Grayscale, its Ethereum mini trust ETH successfully captured nearly $240 million inflows.
If the total inflow of Ethereum ETFs traded in the United States is considered as a product, it will be the fourth largest ETF by 2024.
