Ethereum ETFs have performed miserably. Flows have decreased since inception. Analysts wonder if the SEC may have approved ETFs too early.
Spot Ethereum exchange-traded funds are lower after three months of trading in the US.
Market observers such as Bloomberg Intelligence analyst James Seyfart have predicted huge inflows for Ethereum ETFs — up to a quarter of the $32 billion estimated for their Bitcoin counterparts.
Instead, nine approved Ethereum ETFs appeared Declining currents Since slipping out of the gate in July. Ether dropped 25% after ETF approval.
“I was very wrong, I was very bullish,” Seyfart Said During a panel at the Unsanctioned Crypto Conference.
Ethereum ETFs have experienced negative daily flows 61% Time since their approval, according to data from crypto analytics provider Glassnode.
On October 8, inflows were zero – a grim representation of ETFs' poor performance.
Flows measure net investments from institutional players in Ethereum ETFs.
Data from US crypto fund Foreside Investors shows that total Ethereum ETF outflows have reached $546 million.
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Bitcoin ETFs saw $12 billion in inflows in its first quarter alone.
Approval of the Ethereum ETF marks a regulatory milestone for Ethereum in the US, especially as it signals a softer stance toward the crypto's second-largest asset.
Issuer of Ethereum ETFtickerDaily flowsBlackRockETHA$1.2bFidelityFETH$454.4mBitwiseETHW$318mVanEckETHV$68.9mFranklin TempletonEZET$37.1mInvescoQETH$22.6m21 SharesCETH$14.9mGrayscaleETH$2.67btotal-$546.1m
However, its dismal performance may dampen hopes for the adoption of Ethereum ETF options.
The US Securities and Exchange Commission has extended its review of Cboe's proposal to list options on Ethereum ETFs for further evaluation.
The SEC originally set a deadline of October 19 for a decision, but pushed the date forward to December 3.
Cboe wants to list options from some of the major US-traded Ethereum ETFs, including Invesco, Fidelity and Greyscale.
Meanwhile, the SEC has not shown the same reluctance for Bitcoin ETF options.
The SEC has already approved options trading on IBIT, BlackRock's Bitcoin ETF, on the Nasdaq.
Seyfart says Ethereum ETFs can benefit from similar delays.
“Ethereum ETFs are better off launching later,” Seyfart said.
“If the SEC rejects it, it would undoubtedly be a good time to start [than in the summer].”
Bitcoin's ETF approval comes amid massive price increases for the underlying bitcoin crypto asset.
By the time the SEC approved 11 bitcoin ETFs at the beginning of the year, bitcoin had risen 57% in the past six months.
Despite a small pullback in the first week of the first ETF, the news sent bitcoin to a new peak of $73,000 in March.
Ethereum's ETFs have proven the opposite – so far.
Osato Awan-Nomayo Our Nigeria based DeFi representative. He covers DeFi and technology. To share tips or information about articles, please contact him here [email protected].
Related TopicsEthereum ETFSecurities and Exchange Commission (SEC)
