Source: Blockchain Knight
The launch of spot Ethereum ETFs has not lived up to the high expectations set by BTC ETFs, which has led industry experts to analyze the root causes.
According to Farside Investors, Since its inception on July 23, all spot Ethereum ETFs have seen outflows of $463 million.
Of these, Grayscale's ETHE had an outflow of $2.996 billion, BlackRock had an inflow of $1.258 billion, and Bitwise had an inflow of $321 million.
Hunter Horsley, CEO of Bitwise Asset Management, shed light on the factors that affect the performance of US spot Ethereum ETFs at X.
Horsley summarized 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 suppress investors' immediate interest. Because summer is usually a low season for investors, they "pay attention to but do not participate in many new projects."
Second, it is also related to market conditions. BTC ETP was launched when BTC was rising, while Ethereum ETP was launched in a sideways market. The lack of bullish momentum in Ethereum prices may have contributed to the muted reaction.
In addition, the launch of Ethereum ETFs after BTC ETFs may have overwhelmed investors who are still adapting to Crypto assets.
For many traditional investors, it took some time to figure out how to include BTC in ETPs after they were launched. Ethereum came along before this problem was solved, making it difficult to turn attention to Ethereum.
Nate Geraci, president of ETF Store and co-founder of ETF Research Institute, highlighted the widespread success of Crypto asset-related ETFs in 2024.
“Of the 525 ETFs launched in 2024, 13 of the top 25 are related to BTC or ETH.”
“If the MSTR options strategy ETF is 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 performance ‘no demand’.”
In response, Christopher Perkins, president of CoinFund, said that products that can generate income can enhance appeal.
"Housley acknowledged the value of the investment but downplayed 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 tracking returns is a big problem. At present, most ETH is directly owned and therefore can be valued, but about 2/3 of ETH is not valued."
"But I agree it is valuable. We have an ETH ETP in Europe and it's growing well."
Industry veteran Dan Tapiero, founder and CEO of 10THoldings, remains optimistic about the future of spot Ethereum ETFs.
"Wait a little longer. They will do well."
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