jakiro
Source: Blockchain Knight
The launch of spot Ethereum ETFs did not meet the high expectations set by BTC ETFs, which led industry experts to start analyzing its root causes.
According to Farside Investors,Since its establishment on July 23, all spot Ethereum ETFs have flowed out of $463 million.
Among them, Grayscale’s ETHE flowed out of $2.996 billion, BlackRock flowed in $1.258 billion, and Bitwise flowed in $321 million.
Hunter Horsley, CEO of Bitwise Asset Management, sheds light on X what factors affect the performance of U.S. spot Ethereum ETFs.
Horsley summarizes several factors that are not conducive to the successful launch of spot Ethereum ETFs.
first,The timing of launching Ethereum ETFs in the summer may dampen investors’ direct interest.Because summer is usually an off-season for investors, they “attention but not engage in many new projects.”
Secondly, it is also related to market conditions.BTC ETP launches when BTC rises, Ethereum ETP launches in sideways market.The lack of bullish momentum on Ethereum prices may be one of the reasons for the flat reaction.
also,Ethereum ETFs are launched one after another after BTC ETFs, which may overwhelm investors who are still adapting to Crypto assets.
For many traditional investors, after ETPs are launched, they need some time to figure out how to incorporate BTC into it.Ethereum emerged before this problem was solved, making it difficult for people to turn 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.
“Of course of 525 ETFs launched in 2024, 13 of the top 25 are related to BTC or ETH.”
“If MSTR option strategy ETFs are included, there are 14. The top 4 ETFs are all spot BTC. Five of the top 7 are related to Crypto assets. I call this manifestation ‘no demand’.”
In response, CoinFund President Christopher Perkins saidProducts that generate revenue can enhance attractiveness.
“Housley acknowledges the value of the investment but downplays its direct impact on ETF performance. ET32 is growing rapidly in our European franchise.”
However, Housley also added:I don’t think the lack of market focus earnings is a big problem.Currently, most ETHs are directly owned, so they can be set, but about 2/3 of ETHs are not set.”
“But I agree it’s valuable. We have an ETH ETP in Europe and it’s growing very well.”
Dan Tapiero, an industry veteran and founder and CEO of 10THoldings, remains optimistic about the future of spot Ethereum ETFs.
“Wait a little longer. They will do a good job.”
