Recently, Ethereum ETFs have encountered significant outflows, unlike Bitcoin ETFs which are showing inflows. This article examines the current situation with cryptocurrency fund products.
Current Outflow from Ethereum ETFs
According to SoSoValue, Ethereum ETFs have recorded $53 million in outflows. The largest chunk came from BlackRock's iShares Ethereum Trust ETF (ETHA), which recorded more than $40 million. Other funds, such as Grayscale Ethereum Mini Trust and Fidelity Ethereum Fund, also reported negative flows of $9.33 and $3.32 million respectively, marking the tenth consecutive day of negative flows with the last positive reading on March 4.
Bitcoin ETFs Turn the Tide
After suffering losses, Bitcoin ETFs have begun attracting capital back, recording a total inflow of $209 million on Tuesday. For the past three days, Bitcoin products have shown positive inflows, with the largest influx of $274 million on Monday. However, most of the recent inflows come from BlackRock's iShares Bitcoin Trust ETF (IBIT) at $218 million, despite the ARK 21Shares Bitcoin ETF recording outflows of $9 million.
Staking in Ethereum ETFs
Amid ongoing outflows, several Ethereum ETF issuers are seeking SEC approval to add staking to their products. Last week, the Cboe BZX Exchange requested the regulator's clearance to enable staking in the 21Shares Core Ethereum ETF (CETH). Some believe this could be transformative for struggling Ethereum products.
While Ethereum ETFs continue to experience outflows, Bitcoin ETFs are showing a positive trend. Implementing staking in Ethereum ETFs could be the change needed to attract investors back.
