Ethereum ETFs Attract $2 Billion, Yet Trail Behind Bitcoin Funds

In the past four weeks, spot Ethereum ETFs have attracted over $2 billion in new investments, excluding a major $2.5 billion outflow from Grayscale’s ETHE, as reported by Farside Investors.

Nate Geraci, CEO of ETF Store, remarked that if all Ethereum ETF inflows were consolidated into a single fund, it would rank as the fourth-largest ETF debut ever. Currently, only Bitcoin ETFs—BlackRock’s IBIT, Fidelity’s FBTC, and ARK 21Shares’ ARKB—exceed this total.

Bloomberg’s Eric Balchunas highlighted that, globally, ETF investments have reached $911 billion for the year, with US-based spot crypto ETFs contributing $17 billion, or about 2% of the total. IBIT is now the third-largest ETF by inflows, approaching $20.5 billion, while FBTC has nearly $10 billion.

Despite hitting the $2 billion mark, Ethereum ETFs are not performing as well as their Bitcoin counterparts. Bitfinex analysts link this to Ethereum’s recent downturn, which saw its value fall by 40% in the last month.

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The broader economic climate has also impacted the market. Recent interest rate hikes in Japan have cooled investor enthusiasm, and a significant sell-off in the crypto market earlier this year led to notable losses.

Aurelie Barthere of Nansen noted that a subsequent sell-off from July to August further pressured Ethereum due to its increasing correlation with traditional equities, amid slowing US economic growth and high valuations in other risk assets.

Alexander Stefanov