The recent performance of Bitcoin ETFs has been nothing short of impressive, with over $500 million flowing into the largest US-based products. On the contrary, Ethereum ETFs are facing challenges, with minimal trading volumes and consistent withdrawals.
Bitcoin ETFs experienced a setback at the beginning of the month, losing more than $550 million in just three days as Bitcoin’s price plummeted from over $65,000 to under $50,000. Despite this, both inflows and the price of Bitcoin started to recover in the following weeks. Apart from two days in August, investors have continued to pour funds into US-based spot ETFs, contributing to a total of $506.4 million entering these vehicles in just five trading days. BlackRock’s IBIT remained a frontrunner in attracting funds, significantly outperforming Grayscale’s GBTC.
In stark contrast to Bitcoin ETFs, Ethereum ETFs have faced difficulties since their launch in the US. Ethereum-based products have experienced withdrawals for seven consecutive days, indicating a lack of demand and interest in these offerings. Grayscale’s ETHE has witnessed withdrawals in 13 out of 14 trading days, while all Ethereum ETFs have been in the red for 10 out of 14 days. Despite BlackRock’s ETHA crossing the $1 billion mark, inflows have been minimal, with only one day showing positive net flows. Fidelity’s FETH, on the other hand, showed strength on Thursday with $14.3 million in net flows.
The performance disparity between Bitcoin and Ethereum ETFs highlights the contrasting investor sentiments towards these assets. While Bitcoin ETFs continue to attract significant inflows and demonstrate resilience in the face of market volatility, Ethereum ETFs struggle to gain traction and face consistent withdrawals. The current data suggests that Ethereum ETFs are not yet able to replicate the success of their Bitcoin counterparts.
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