Approximately one month has passed since the United States Securities and Exchange Commission (SEC) gave the green light for spot Ethereum ETF products to commence trading. This achievement, which makes Ethereum the first altcoin to get regulatory approval, also comes with performance expectations on the products.
Ethereum ETFs vs. Bitcoin ETFs: A Disappointing Start?
As expected, crypto stakeholders would always draw comparisons between the spot Ethereum ETF and the spot Bitcoin ETF, which launched earlier in January. According to data insights from Econometrics on X, the Ethereum ETFs have struggled in the past month. Since their debut in the market, the products have registered negative total net flows.
Interestingly, the eight approved Ethereum ETF products made a solid first-day statement with more than $1.1 billion in trade volume. According to data, Grayscale’s Ethereum Trust led the pack with traded volumes worth over $469 million.
However, in a curious twist, the overall negative net flow recorded by the products has been linked primarily to Grayscale Ethereum. Notably, the net flows might still be positive without Grayscale bleeding cash.
The Ethereum ETFs are struggling.
Since their launch, they have recorded negative total net flows.
This is primarily due to the Grayscale Ethereum Trust bleeding cash.
It’s a similar story to the Bitcoin ETFs, except for ETH there isn’t enough demand to compensate for the… pic.twitter.com/9ndGooSAfD
— ecoinometrics (@ecoinometrics) August 19, 2024
According to ecoinometrics, the current data on the products’ performances is similar to how spot Bitcoin ETFs performed in January. Both share similarities, except that for Ethereum, the total demand has proven insufficient to compensate for the Grayscale struggle.
Will Institutional Interest Turn the Tide?
So far, the positive momentum after the launch for ETH remains lower than that for the Ethereum ETFs and Bitcoin ETFs. It remains to be seen whether investors do not find the product attractive or whether the timing of the launch accounts for the low momentum.
While the eight Ethereum ETF products may have had a rough start, the broader crypto community anticipates steady growth as more institutional investors become interested in the products and begin to stack them.
Data as of this writing shows Ethereum trading at $2,380.07, a 1.03% slip in the past 24 hours.
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