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Crypto: Ethereum ETFs have lost 500 million in 5 weeks

Aug 29, 2024
  1. Comparative Analysis of Crypto ETFs
  2. Grayscale Facing Colossal Losses
  3. Prospects for a Combined Bitcoin and Ether ETF

Ethereum ETFs have struggled since their launch in the USA. These new crypto-assets have recorded net outflows of 500 million dollars.

Comparative Analysis of Crypto ETFs

Since their launch in the United States, Ethereum ETFs have faced tough times. These new crypto-assets have recorded net outflows of 500 million dollars. In comparison, Bitcoin ETFs attracted over 5 billion dollars in the first 5 weeks. This stark contrast highlights a significant difference in enthusiasm between the two crypto assets.

The first-mover advantage for Bitcoin played a crucial role. Bitcoin, being the first cryptocurrency to have a spot ETF, naturally captured the attention of institutional investors.JPMorgan research team led by Nikolaos Panigirtzoglou

Grayscale Facing Colossal Losses

Grayscale’s Ethereum ETF (ETHE) has been particularly impacted by this trend. The fund’s net outflows have reached 2.5 billion dollars, far above JPMorgan’s initial expectations, which anticipated outflows of about 1 billion dollars. Despite launching a mini Ether ETF, the fund attracted only 200 million dollars in inflows. This disappointing result shows that investors’ appetite for Ethereum cryptocurrency remains limited.

Prospects for a Combined Bitcoin and Ether ETF

JPMorgan notes an increasing number of applications for the creation of a combined ETF offering exposure to both Bitcoin and Ethereum. Combined ETFs could meet dual demand: from institutional investors seeking to diversify their assets, and from individuals attracted by the promise of high returns. If this trend is confirmed, it could reshape the landscape of crypto ETFs and offer a new opportunity for Ethereum to regain ground against Bitcoin.

The coming months will be decisive in observing how these trends develop and influence crypto investors’ strategies.

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