Lưu trữ cho từ khóa: Ethereum ETF

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US spot Ether ETFs end 4-day negative flow streak with $33.7m in inflows

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US spot Ether ETFs end 4-day negative flow streak with $33.7m in inflows

The nine U.S. spot Ethereum exchange-traded funds collectively saw net inflows of $33.7 million yesterday, following four straight days of negative flows.

Despite continued outflows from Grayscale’s ETF, overall Ethereum (ETH) ETF flows had a positive day yesterday, July 30. According to data from Farside Investors, Grayscale’s ETHE was the sole spot ether ETF to experience net outflows yesterday, July 30, amounting to $120.3 million. The ETF, which has experienced outflows every day since its launch on July 23, has seen a total of $1.8 billion in outflows since its debut.

Yesterday’s outflows from ETHE were counterbalanced by significant inflows into other funds, led by Blackrock’s ETHA with $118 million. Fidelity’s FETH attracted $16.4 million, while Grayscale’s lower-fee Ethereum ETF, Ethereum Mini Trust, gained $12.4 million in net inflows.

Additional inflows were reported by Franklin’s EZET at $3.7 million and Bitwise’s ETHW at $3.5 million. The remaining three spot ether ETFs — 21Shares’s CETH, VanEck’s ETHV and Invesco Galaxy’s QETH — reported zero net flows on Tuesday.

Per data from SoSoValue, the total daily trading volume for these spot Ether ETFs was $563.22 million on July 30, a decline from $773.01 million on July 29 and $1.11 billion on launch day.

Bitcoin ETFs see $18.3m in outflows

Meanwhile, on July 30, the 11 spot Bitcoin (BTC) ETFs in the U.S. saw net outflows of $18.3 million, breaking a four-day streak of positive flows, according to data from Farside.

BlackRock’s IBIT was the only spot Bitcoin ETF to record net inflows, with $74.87 million entering the fund.

The Grayscale Bitcoin Trust (GBTC) continued its downward movements and experienced the largest net outflows among the competing products at $73.6 million. This was followed by Ark and 21Shares’ ARKB with $7.9 million in net outflows, VanEck HODL with $5.6 million, Bitwise BITB with $3.2 million and Fidelity FBTC with $2.9 million in net outflows.

The total daily trading volume for these spot Bitcoin ETFs was $1.37 billion on Tuesday, down from $2.68 billion on Monday and $4.66 billion on launch day, according to SoSoValue data.

The different momentum in the spot BTC and ETH ETFs comes as the global cryptocurrency market capitalization saw a 0.38% decline over the past 24 hours, standing at $2.39 trillion, according to data from CoinGecko. 

The day marked a reversal for both U.S. Ethereum ETFs and Bitcoin ETFs. On Monday, July 29, spot Bitcoin ETFs recorded $124.1 million in net inflows, while spot Ether ETFs saw $98.3 million in net outflows, as previously reported by crypto.news.

In an X post on July 31, Split Capital founder and chief investment officer Zaheer Ebtikar remarked on the positive shift, noting it was “definitely some rotating capital,” as spot Bitcoin ETFs experienced $18.3 million in outflows on July 30.

Just two days earlier, on July 29, Steno Research senior analyst Mads Eberhardt predicted that the substantial outflows from Grayscale’s ETHE would likely taper off this week, a trend that seems to have already begun.

At the time of writing, the price of BTC had dropped by about 1% to $66,270. ETH, the largest altcoin in the crypto market, has also experienced a slight decline of about 0.5% over the past day, currently trading around $3,320.

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Inside look at the performance and structure of new Ethereum ETFs

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Which of the newly launched Ethereum ETFs are showing the most promise, and why? Read on

On July 23, the crypto market reached a key milestone with the launch of nine spot Ethereum exchange-traded funds (ETFs), following months of anticipation and regulatory hurdles. 

Major financial players including Grayscale, BlackRock, Franklin Templeton, Fidelity, VanEck, Bitwise, 21Shares, and Invesco received the green light after their S-1 registration statements were approved. 

Contrary to a quiet debut, these ETFs made a strong impression, netting an impressive $107 million on their first day. However, by July 26, the total outflows over four days reached $341 million. 

Notably, all these newly launched funds, except for the Grayscale Ethereum Trust, reported net positive inflows on all days. The Grayscale Ethereum Trust experienced a stark outflow of over $1.5 billion in the first four trading days, which markedly impacted the overall ETH ETF market. 

Let’s dive deeper into which ETFs are now active, explore their fee structures, and analyze their performance as of July 26, when the latest data were updated.

Which spot ETH ETFs are live?

Grayscale Ethereum Mini Trust

Grayscale has introduced the Ethereum Mini Trust on the New York Stock Exchange (NYSE) with the ticker ETH. This fund stands out due to its low-cost structure, charging a management fee of 0.15%. 

However, Grayscale has temporarily waived this fee to 0% for the first six months, applicable for up to a maximum of $2 billion in assets under management (AUM). 

Coinbase serves as the custodian. The fund saw decent early interest, with inflows of $15.1 million on its first, totaling $164 million.

Grayscale Ethereum Trust

Grayscale Ethereum Trust, also on the NYSE under the ticker ETHE, was one of the first publicly traded Ethereum funds in the U.S., originally launched in 2017. 

Now converted to an ETF, it charges a hefty fee of 2.5%. Probably due to its high fees, the fund experienced substantial outflows, with $484.1 million on the first day and $326.9 million on the second day, totaling $1.5 billion. Coinbase acts as the custodian for this fund.

Franklin Ethereum ETF

Franklin Templeton, another global leader in asset management, has launched the Franklin Ethereum ETF on the Chicago Board Options Exchange (CBOE) with the ticker EZET. 

The fund charges a post-waiver fee of 0.19%, with fees waived to 0% until January 31, 2025, for the first $10 billion in fund assets. Coinbase is the custodian. The ETF has shown decent performance so far, with inflows totaling $23.3 million.

VanEck Ethereum ETF

VanEck, a $90 billion investment management firm, has launched the VanEck Ethereum ETF on the CBOE with the ticker ETHV. The fund charges a fee of 0.20%, but this fee is waived to 0% through July 22, 2025, or the first $1.5 billion in assets under management. 

Gemini, another well-respected custodian in the crypto space, is used for this ETF. The ETF saw inflows of $7.6 million on its first, totaling $35.4 million.

Bitwise Ethereum ETF

Bitwise has launched the Bitwise Ethereum ETF on the NYSE with the ticker ETHW. This fund charges a low 0.20% management fee for the first $500 million in assets, with the fee set at 0% for the first six months. 

In addition to the low fees, Bitwise has pledged to donate 10% of its profits to Ethereum developers. Coinbase is the custodian for this ETF. 

The fund has performed strongly so far, with inflows of $204 million on the first day, totaling $265 million.

21Shares Core Ethereum ETF

The 21Shares Core Ethereum ETF trades on the CBOE with the ticker CETH and charges a fee of 0.21%. Coinbase is the custodian for this ETF. The fund saw inflows of $7.5 million on its first day, but since then, there have been no additional inflows.

Fidelity Ethereum Fund

Fidelity Investments, a major provider of workplace retirement plans, has launched the Fidelity Ethereum Fund on the CBOE under the ticker FETH. The fund has a fee of 0.25%, but until the end of this year, Fidelity will not charge any fee. 

Fidelity is self-custodying its ETH, which might appeal to those who trust Fidelity’s long-standing reputation in the financial industry. The fund had strong inflows of $71.3 million on the first day, totaling $219 million.

iShare Ethereum Trust

BlackRock, the world’s largest asset manager with $10 trillion in assets under management, has launched the iShares Ethereum Trust ETF on NASDAQ with the ticker ETHA. 

This fund carries a 0.25% sponsor fee, but with a one-year waiver, the fee is reduced to 0.12% for the first $2.5 billion in assets under management (AUM). 

Coinbase is the custodian for this fund. It saw substantial inflows, with $266.5 million on the first day, totaling $442 million.

Invesco Galaxy Ethereum ETF

In partnership with Galaxy Asset Management, Invesco has launched the Invesco Galaxy Ethereum ETF on the CBOE with the ticker QETH. The fund charges a fee of 0.25%, with Coinbase as the custodian. The ETF saw inflows of $5.5 million on the first day, bringing its total inflow to $14.2 million.

Coinbase at an advantage

Coinbase is the custodian for most of the newly launched spot Ethereum ETFs, giving it a unique advantage in the market. 

As a custodian, Coinbase securely stores the Ether backing these ETFs, a role that requires trust and reliability. This isn’t new territory for Coinbase, which also serves as the custodian for many spot Bitcoin ETFs.

From a financial perspective, custodial services provide a steady income stream for Coinbase. As the crypto market expands, the volume of assets they manage grows, strengthening Coinbase’s market position and enhancing its revenue base. 

This growing optimism is reflected in Coinbase’s share price, which has nearly doubled in the last six months, placing the company in a comfortable position.

The road ahead for spot ETH ETFs

According to Eric Balchunas, a senior Bloomberg ETF analyst, the iShares Ethereum Trust (ETHA) had the highest trading volume on Day One compared to all new ETF launches in the past year, excluding Bitcoin ETFs. 

ETHA was followed by Fidelity’s FETH in the second spot, Bitwise’s ETHW in the fifth, Grayscale’s ETH in the seventh, and VanEck’s ETHV in the thirteenth. Even the lowest among the group, 21Shares’s CETH, ranked in the top 10% of new launches.

Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, shared his thoughts on the future demand for these products. He believes that spot Ethereum exchange-traded products (ETPs) could bring in $15 billion in net flows within the first 18 months. 

At this point, things seem promising for these ETFs. The early trading volumes and inflows show that investors are eager to invest in Ethereum through regulated products. 

As more people understand and feel comfortable with Ethereum and other cryptos, the demand for these ETFs could likely grow even more.

However, nothing is guaranteed, and the tides can change at any moment, so trade and invest wisely. Never invest more than you can afford to lose.

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Theo Crypto News

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Ethereum ETFs see $341.8m net outflows in first week, triggered by Grayscale’s ETHE

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U.S. spot Ethereum exchange-traded funds have had a mixed start this week, with net inflows into most ETFs overshadowed by significant net outflows from Grayscale’s converted fund, ETHE.

Data from Farside Investors shows that spot Ethereum (ETH) ETFs saw just over $162 million in total outflows on Friday, July 26, marking the third consecutive day of net negative flows. In contrast, spot Bitcoin (BTC) ETFs recorded $51.8 million in net inflows on the same day, continuing a trend of positive flows for three days straight.

The first ever spot Ethereum ETFs in the U.S. — nine products from eight issuers — started trading on Tuesday, July 23, following their approval by the Securities and Exchange Commission in May.

ETH ETFs’ first week

In the first week of trading, most of the newly launched Ethereum ETFs saw positive inflows, except for Grayscale’s ETHE, which experienced $1.51 billion in net outflows. ETHE’s outlfows have resulted in an overall weekly outflow of $341.8 million for the ETFs.

BlackRock’s ETHA led the pack in terms of inflows, generating $442 million worth of net inflows, followed by Bitwise’s ETHW with $265.9 million and Fidelity’s FETH with $219.4 million.

VanEck’s ETHV and Franklin Templeton’s EZET saw smaller inflows of $35.4 million and $23.3 million, respectively. 21Shares’s CETH received an inflow of $7.5 million only on launch day and saw zero inflows on the following three trading days.

Ethereum ETF flows in first week of trading | Source: Farside

Grayscale’s two Ethereum ETFs, explained

Major crypto asset manager Grayscale has introduced two spot Ethereum funds to the markets this past week, trading under the tickers ETHE and ETH. The Grayscale Ethereum Trust, ETHE, was initially launched in 2017 as a private placement, meaning it was only available to select investors and institutions in the U.S. Since 2019, the shares of the Ethereum Trust have been publicly traded OTC under the ticker ETHE. OTC trading of ETHE came with a 6-month holding period. However, since ETHE was converted to a spot Ethereum ETF last week, investors gained the ability to sell their holdings more freely.

The 2.5% management fee for ETHE — which is relatively quite high compared to fees of 0.25% or less from other ETF issuers — has driven investors to switch to competing products with lower fees, spurring the outflows from Grayscale’s fund. This situation is very much similar to what happened with Grayscale’s Bitcoin Trust (GBTC), which was also converted to a BTC ETF in January and then saw over $5 billion in outflows in its first month post-conversion.

Likely in expectation of this dynamic, Grayscale launched another ETF product this week, the Ethereum Mini Trust (under the ticker ETH). The new product boasts a competitive fee of 0.15%, positioning it as one of the most affordable spot Ethereum funds in the U.S. In contrast to ETHE, Grayscale’s Mini Trust saw inflows every trading day this past week, for a total of $164 million.

Grayscale’s ETHE, which held around $10 billion in assets (2.9 million ETH) before its conversion to an ETF, allocated $9.2 billion to its ETHE ETF product and just over $1 billion to its ETH fund.

The ETHE outflows, coupled with a more than 6% drop in the price of Ethereum since the ETFs launched, have reduced Grayscale Ethereum Trust’s assets under management to approximately $7.46 billion (2.28 million ETH), as reported on its fund page.

Ethereum ETFs vs Bitcoin ETFs: first week

It’s still early days, and if Grayscale’s spot Bitcoin ETF pattern is an indicator, the net outflows for ETHE might slow down. However, with an average net outflow of around $378 million per trading day this past week, ETHE’s assets could be depleted within a month.

In terms of the Grayscale effect, a significant difference between GBTC and ETHE is that GBTC shares were trading at a discount to the price of spot BTC when the GBTC ETF product launched. In contrast, ETHE’s “discount” — or the difference between the price of an ETHE share and the spot price of ETH — had closed by the time the spot Ethereum ETFs went live, partly explaining the stronger incentive to exit the fund.

Additionally, Bitcoin’s price had surged considerably before the spot Bitcoin ETFs launch in January, nearly doubling after approval expectations increased in October. In contrast, the price of Ethereum has been declining, falling more than 15% since the spot Ethereum ETFs were first approved on May 23.

“The major difference to me is the comparatively massive ETHE outflow. I think GBTC didn’t have that on day one because it was still at a meaningful discount when it launched,” noted James Seyffart, a Bloomberg ETF analyst, when comparing the outflows of the two products.

The the nine newly launched Ethereum ETFs saw total net inflows of $106.7 million on their first trading day, July 23, compared to $628 million in inflows for Bitcoin ETFs on their debut, according to data from SoSoValue

In terms of trading volume, the ETH ETFs saw around $1.1 billion in trades on their first day, while BTC ETFs saw $4.66 billion in trading volume on their inaugural day.

Throughout the first week, Ethereum ETFs generated a total trading volume of approximately $4.05 billion, compared to $7.85 billion for Bitcoin ETFs in their initial week.

Analysts anticipate that spot Ethereum ETFs will attract inflows ranging from 6% to 48% of those seen by Bitcoin ETFs in the first six months. This estimate suggests total inflows into Ethereum ETFs could reach between $1 trillion and $7.5 trillion by late January 2025.

At the time of writing, ETH, the second-largest cryptocurrency, was trading at $3,280. Its market cap is around $393 billion, with a 24-hour trading volume near $14.4 billion.

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Theo Crypto News

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The implications of the Ethereum ETF and beyond | Opinion

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After launching our own Ethereum exchange-traded funds in Hong Kong, we’ve experienced firsthand the unlock that comes with greater visibility among investors. We saw an immediate shift in the enthusiasm, tone, and tenor of our conversations with investors, both institutional and retail, who saw this moment as a shift in legitimacy for the asset class. 

So, as Ethereum (ETH) ETFs start trading in one of the world’s largest markets this week, we see this as another milestone on the path to full integration of digital assets into traditional finance. This move paves the way for more diverse financial products, including cryptocurrency basket ETFs, ETFs with staking options, tokenized securities, and other financial innovations.

So, what will the real impact of expanded access to ETH as an investment class really be? Will we see ATHs in the coming months? How can we overcome Ethereum’s complexity as infrastructure compared to Bitcoin’s reputation as digital gold? Let’s explore these questions and how they may result in a more gradual adoption curve among investors.

The BTC effect

When spot Bitcoin (BTC) ETFs debuted, they saw over $25 billion traded in the first month. It’s unlikely that Ethereum ETFs will match this volume initially, considering Ethereum’s average 24-hour trading volume is currently at a 70% discount compared to Bitcoin. We expect spot Ethereum ETFs to trade between $15 billion and $20 billion in the first month.

Of course, it’s possible that the inflows will be larger than we expect. This would indicate a bullish sentiment that could drive momentum and give Ethereum a positive psychological push as an accepted asset class for investors of all kinds. 

However, many investors will be comparing ETH directly to BTC—and that’s a major messaging challenge. If BTC is digital gold, then what is ETH? How do investors place it into their diversified portfolios? The success of the ETH ETF hinges on its marketing, which must focus on ETH as the utility layer for the crypto industry. 

Potential for a price rally

By the end of this year, we forecast a price for Ethereum somewhere between $6,000 and $10,000. This price represents 1.6x to 2.5x its 52-week high. Our relatively bullish outlook on Ethereum is driven by rising demand from ETF introductions, increased interest in Ethereum-linked calls, and the growing adoption of ERC-20 tokens and the broader Ethereum ecosystem.

While initial ETF launches might push Ethereum higher, there could be short-term outflows from Grayscale’s Ethereum Trust, similar to what was observed with Bitcoin ETFs. Investors might shift funds to options with lower fees, impacting market sentiment temporarily. 

The launch of an Ethereum ETF could trigger a modest price rally for ETH, driven by increased demand. This uptick might also positively affect other cryptocurrencies through a spillover effect. However, the macroeconomic environment will significantly influence the long-term trajectory of digital assets. Should bearish headwinds diminish and optimism grow with the advent of new funds, Ethereum could see greater price swings.

The sustainability of these gains will depend on external factors such as equity prices, interest rates, emerging sectors, and institutional adoption rates. There’s also the election year in the US, which injects a modicum of uncertainty into the medium-term appetite for risk assets like crypto. 

Staking rewards: Retail vs institutional 

One potential limitation of Ethereum ETFs is the absence of staking rewards, a significant incentive for holding Ethereum directly. Staking allows investors to earn rewards, making it attractive for those comfortable with self-custody. That could limit the appeal for crypto natives, who may not consider adding ETH to their brokerage accounts. 

In contrast to retail investors, ETFs provide a regulated and convenient way for institutional investors to gain exposure to Ethereum without dealing with direct ownership. The strong institutional interest in ETH suggests a growing acceptance of ETFs as exposure instruments, even without staking yields. There is ongoing work with regulators to potentially introduce an ETH ETF with staking in the future, which could enhance market competitiveness.

Even so, staking is not a deal breaker. And income is not the main reason why many investors would want to add ETH ETFs to their portfolio. Rather, they’re looking for price appreciation and exposure to the digital asset vertical. 

Institutional adoption 

Institutional interest in Ethereum could differ from Bitcoin ETFs due to Ethereum’s potential as an infrastructure layer for decentralized applications across various sectors, including finance, supply chain, and technology. These sectors offer significant opportunities, making Ethereum attractive beyond just being a store of value like Bitcoin. And, as regulatory frameworks evolve and provide more clarity and certainty, institutions might find Ethereum a valuable addition for portfolio diversification.

Staking is a major attraction for institutional investors considering Ethereum ETFs. Institutional staking within crypto ETFs represents a sophisticated tool for yield generation, leveraging the inherent value of staked assets. 

This could potentially outperform traditional fixed-income instruments by providing a consistent yield that buffers against market volatility. Incorporating staking into crypto ETFs potentially allows institutions to maximize asset utilization, capturing price appreciation and generating additional returns through staking rewards. This dual-purpose approach can optimize overall investment strategies and could stabilize fund performance in bearish markets.

Moreover, institutional participation in staking could enhance governance within the ecosystem, encouraging more robust regulatory guidelines from relevant authorities and creating a safer, more transparent environment that benefits everyone. This is most evident when it comes to liquidity, as institutions tend to provide more reliable support over time as they become more comfortable with an asset class prone to instability and volatility. 

An upside catalyst

The approval of Ethereum ETFs promises to be a catalyst for market growth, attracting substantial capital inflows from investors preferring the regulated environment of traditional financial markets. As each new jurisdiction approves crypto-related financial products, it attracts new investors who were previously hesitant due to regulatory uncertainties, thus expanding the market.

More importantly, this exposure will add legitimacy to Ethereum in the eyes of the public, benefiting the broader digital asset ecosystem. We will see more people consider investments not only across other digital assets but also in the companies innovating in the broader blockchain ecosystem. 

We see the potential for a rotation into utility, with investors considering projects that address real-world solutions and have the potential to disrupt industries on a global scale. We also could see a boost for defi, as financial products that bridge the gap between traditional finance and decentralized finance become more appealing as investors gain comfort with digital assets. 

And, while initial trading volumes may not match Bitcoin ETFs, the long-term impact on Ethereum and the broader crypto ecosystem promises to be substantial, paving the way for greater awareness and innovation that enables the future of finance.

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Theo Crypto News

Phân tích

Expert explains why Ethereum price suffered a harsh reversal

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Ethereum price has dropped for two consecutive days, erasing most gains in the last three weeks.

The price of Ethereum (ETH) retreated to $3,145 on Thursday, its lowest level since July 13 and 11% below its highest point this week.

Ethereum price chart | Source: TradingView

Why Ethereum price is falling

This pullback happened despite the Securities and Exchange Commission’s recent approval of spot Ethereum ETFs and their strong performance. 

On Wednesday, these ETFs traded about $852 million compared to Bitcoin’s $1.1 billion, meaning that there is strong demand among investors. Data by Blackrock shows that ETHA has over $269 million in assets, while the Bitwise Ethereum ETF (ETHW) has $230 million in assets.

Ethereum has dropped for three reasons. In a note, Michael van de Poppe, a popular crypto analyst, pointed to the ongoing liquidations from the Grayscale Ethereum Trust (ETHE), a fund with an expense ratio of 2.50%. 

As it happened with the Grayscale Bitcoin ETF, many investors have sold their holdings and moved them to cheaper funds. For example, an ETHE investor with $100,000 in assets will pay a fee of $2,500, while one in Grayscale’s Mini Ethereum ETF (ETH) will pay just $150. 

Therefore, Michael believes that Ethereum price could retreat some more soon and then bounce back when outflows from ETHE ease. He expects that the coin could jump to a record high when these outflows end.

Buy the rumor, sell the news

Second, Ethereum price is falling as investors sell the news since the token rallied ahead of the approval. In most cases, assets rise ahead of a major event and then retreat when it happens. This happened after the recent Bitcoin halving, the approval of Bitcoin ETFs in January, and the judgment of the Ripple vs. SEC case. 

Finally, the decline aligns with the ongoing Bitcoin (BTC) price action. BTC, the biggest crypto in the industry, has dropped for four straight days, triggering a deep sell-off among other altcoins like Avalanche (AVAX) and Jasmy. 

Despite the ongoing decline, a bullish case can be made for Ethereum. It is the second-biggest cryptocurrency in the world, has a long history of outperforming Bitcoin, and has strong utility, as Jay Jacobs of BlackRock said.

Ethereum is still the most active blockchain network. It handles the most stablecoin transactions, has the most assets in the decentralized finance industry, and makes the most money. Data by TokenTerminal shows that it has made over $1.7 billion in fees this year, double what Tron (TRX) and Bitcoin have made combined. 

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Ethereum ETFs bring substantial benefits, yet challenges remain | Opinion

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For weeks, speculation has been mounting about when the US Securities and Exchange Commission (SEC) will approve spot Ethereum exchange-traded funds (ETFs). The introduction represents a transformative development in the cryptocurrency investment landscape, as it brings the potential to democratize access to Ethereum (ETH) investments, enhance market stability, and attract a more diverse investor base. Less discussed but equally important, however, is the need for a balanced consideration of the inherent risks investors should take into account.

On the plus side, Ethereum ETFs help simplify the process of investing in Ethereum, making it accessible to a broader audience. This ease of access is particularly beneficial for traditional investors who may be unfamiliar or uncomfortable with the complexities of direct cryptocurrency investments. Issues related to maintaining passphrases, cold storage, security, and multisignature (also known as multisig) access are a massive barrier and source of friction for investors looking to diversify away from traditional assets such as bonds/equities.

SEC approval has the added benefit of providing regulatory assurance. As a regulated financial product, an Ethereum ETF offers a level of security and oversight that is not present in the direct cryptocurrency market. This regulatory framework can instill confidence among investors, especially those wary of the unregulated nature of cryptocurrency exchanges. Including an Ethereum ETF in investment portfolios allows for greater diversification in an uncorrelated asset that many see as the future of finance. 

Cryptocurrencies often have different performance metrics compared to traditional assets, providing a hedge against market volatility and offering the potential for higher returns. As investors look beyond the 60/40 model for investing, Bitcoin ETFs and Ethereum ETFs provide a secure and regulated product to realize these goals. There’s also the potential benefit of institutional investors entering via ETFs, creating a larger, more mature, and more stable cryptocurrency market. Although it remains to be proven, increased institutional participation, driven by the availability of a regulated investment vehicle, could lead to more stable trading patterns and reduced volatility.

Not without challenges 

That being said, the potential benefits of an Ethereum ETF are still hypothetical and remain to be played out. With potential benefits come the potential risks that investors should weigh up, Ethereum remains a volatile asset, and an ETF will inherit this volatility. Investors must be prepared for significant price fluctuations and understand that the ETF does not eliminate the inherent risks of the underlying asset. 

There are also regulatory and technological uncertainties, as the evolving regulatory landscape for cryptocurrencies poses potential risks. Regulatory changes can impact the ETF’s performance and operations, with elections approaching in the US this November, it remains to be seen how supportive the government will be towards this nascent sector of the economy. 

Additionally, technological risks related to Ethereum, such as network upgrades and security vulnerabilities, can affect the ETF’s value. For all the industry proselytizes about the benefits of decentralization, there are significant concerns related to potential centralized points of failure, such as Validator Client software approaching a two-thirds majority, the Infura API, MEV Relays or cloud usage that could lead to catastrophic losses if not properly dealt with by the Ethereum community. 

In fairness, the Ethereum community is addressing these concerns related to centralization and being overly reliant on Geth/Teku validator client software. However, investors would be right to have concerns about how new technologies can fall down due to unexpected hurdles. There’s also the potential for market manipulation; while ETFs provide a regulated environment, the underlying cryptocurrency markets are still susceptible to manipulation. This can indirectly influence the ETF’s performance, making it essential for investors to remain vigilant.

A transformative development

The Ethereum ETF is a significant advancement that brings substantial benefits, including increased accessibility, regulatory oversight, and portfolio diversification. It can attract a wider range of investors, from retail to institutional, and contribute to the overall stability and maturity of the cryptocurrency market. However, the potential risks associated with Ethereum’s volatility, regulatory uncertainties, and technological factors cannot be overlooked. Investors must approach the Ethereum ETF with a comprehensive understanding of these risks and be prepared for the inherent uncertainties. No one is suggesting that investors should allocate more than 5–10% of their investment portfolio into digital assets, and if they do, they should be aware of the inherently volatile nature of these assets and their potential downsides.

While the Ethereum ETF offers an exciting opportunity for diversified investment and enhanced market participation, it is crucial for investors to conduct thorough research and consider their risk tolerance. The ETF’s regulated nature provides a safer entry point into the world of cryptocurrencies, but informed and cautious investment strategies remain paramount. By weighing the transformative benefits against the inherent risks, the Ethereum ETF can be seen as a balanced and innovative addition to the financial market, poised to play a pivotal role in the evolution of cryptocurrency investments and the financial services industry in general.

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Theo Crypto News

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Spot Ethereum ETFs saw $133m outflow on second trading day

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Spot Ethereum exchange-traded funds have recorded an immediate net outflow on their second day of trading in the United States.

According to data provided by Farside Investors, spot Ethereum (ETH) ETFs witnessed a net outflow of $133.3 million on Wednesday, July 24. Notably, only the Grayscale Ethereum Trust (ETHE) saw an outflow of $326.9 million. 

On their first trading day, spot ETH ETFs recorded over $1 billion in trading volume with $106.6 million in net inflows.

Data from Farside Investors shows that the total outflow from the ETHE fund has already reached $811 million over the past two days. The Grayscale Ethereum Mini Trust (ETH), on the other hand, saw $45.9 million and $15.1 million on July 24 and 23, respectively. 

Most of the inflows came from the Fidelity Advantage Ether ETF (FETH), worth $74.5 million. 

Moreover, the WisdomTree Physical Ethereum Securities ETP (ETHW) and the VanEck Ethereum ETF (ETHV) registered $29.6 million and $19.8 million in inflows, respectively.

BlackRock’s iShares Ethereum Trust ETF (ETHA) saw $17.4 million in inflows yesterday, per Farside Investors. The investment product’s inflows reached $266.5 million on July 23.

Franklin Ethereum ETF Fund (EZET) and Invesco’s Ether Fund (QETH) had smaller shares of the net inflows, each worth $3.9 million and $2.5 million. 21Shares Core Ethereum ETF (CETH) remained neutral as the market moved back into bearish momentum.

Following the significant net outflows from Ethereum ETFs, the Ethereum price plunged by 7.6% over the past 24 hours. The second-largest cryptocurrency is trading at $3,180 at the time of writing. ETH’s market cap is currently hovering at $382 billion with a daily trading volume of $21.3 billion.

ETH price – July 25 | Source: Trading View

It’s important to note that the broader crypto market is also wandering in the bearish zone. According to data from CoinGecko, the global cryptocurrency market capitalization declined by 3.4% over the past day and is currently sitting at $2.43 trillion.

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Altcoin

NBA star Scottie Pippen’s Ethereum vs. Solana comparison triggers debate

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Seven-time NBA All-Star Scottie Pippen ignited a debate on social media Saturday by asking his more than 658,000 followers to choose between Ethereum and Solana. 

The question inspired more than 4,000 responses as of Sunday afternoon. Many commentators said Pippen should choose neither Ethereum (ETH) nor Solana (SOL), and suggested Bitcoin (BTC) and Cardano (ADA) instead.

This renewed interest follows Pippen’s earlier launch of his NFT collection, the Scottie Pippen SP33 NFT, which has a current floor price of $42.13. The collection consists of 1,000 minted NFTs, held by 491 unique owners, and has a total market cap of $42,130.

Pippen’s renewed enthusiasm for cryptocurrency comes amid significant growth and adoption within the industry. As blockchain technology gains traction among individuals and businesses, more celebrities and athletes like Pippen will likely become involved.

While it remains to be seen which blockchain platform Pippen will ultimately support, his involvement is expected to further stir interest and excitement within the crypto community in the coming months and years.

Solana: Bullish trends

Solana has surged by 20.8% in the past seven days and 3.6% in the daily timeframe.

According to technical analysis, Solana is currently forming an ascending triangle pattern, which often signals a potential breakout. The Relative Strength Index (RSI) shows that the asset is neither overbought nor oversold, indicating balanced market sentiment.

Resistance is currently at  $193.92, while support is around $141.68. By the end of 2024, SOL could range between $250 and $300, suggesting a strong market recovery and resilience.

At present, SOL is closely following Bitcoin’s movements, solidifying its position among the top cryptocurrencies.

Known for its high throughput and low transaction fees, Solana employs a unique Proof-of-History (PoH) consensus mechanism, enabling it to process up to 65,000 transactions per second.

Currently, Solana’s price is around $176, and its market capitalization is $81 billion. The price has recently recovered to its 200-day moving average, suggesting a potential long-term uptrend.

Ethereum ETF speculation propels price gains 

Ethereum has also experienced price gains in recent weeks, driven by ongoing discussions about the approval of an Ethereum ETF in the United States.

As of the latest update, Ethereum’s price stands at $3,496.61. Since the start of 2024, Ethereum has climbed by over 42%, with a rise of more than 5% in July alone. Over the past 14 days, the price has increased by more than 17%.

The ongoing discussions regarding Ethereum ETFs, with companies like VanEck, Valkyrie, and Grayscale filing applications with the U.S. Securities and Exchange Commission (SEC), have significantly contributed to this upward trend. 

Although no ETF has been approved yet, the anticipation of institutional investment through these funds has bolstered investor confidence and driven up the price.

Despite these recent gains, Ethereum’s price remains below its all-time high of $4,878.26 from November 2021. However, the continued developments in the Ethereum ecosystem and the potential for ETF approval keep traders optimistic about the token’s long-term prospects.

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Theo Crypto News

Bitcoin

BTC ETF inflows reached $533m ahead of ETH ETF launch

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Spot Bitcoin exchange-traded funds in the United States have been seeing consecutive inflows ahead of the spot Ethereum ETF launch.

According to data provided by Farside Investors, spot Bitcoin (BTC) ETFs recorded $533.6 million in inflows on July 22 — reaching the highest level since June 4’s $886.6 million. This is the third consecutive week of inflows for the investment products.

Most of the inflows, worth $526.7 million, came from BlackRock’s iShares Bitcoin Trust (IBIT), per Farside Investors. With the recent surge, the total amount of inflows into the IBIT ETF came close to the $19.5 billion mark.

Data shows that the Fidelity Wise Origin Bitcoin Fund (FBTC), Invesco Galaxy Bitcoin ETF (BTCO) and Franklin Bitcoin ETF (EZBC) also had $23.7 million, $13.7 million and $7.9 million in inflows, respectively. 

Moreover, despite the market-wide bullish expectations, the VanEck Bitcoin Trust (HODL) registered $38.4 million in outflows.

The remaining spot BTC ETFs, including the Grayscale Bitcoin Trust (GBTC), stayed neutral. According to Farside Investors, the total amount of these investment products is currently sitting at $17.58 billion.

While the spot BTC ETFs started a bullish week, the Bitcoin price declined by 1.3% in the past 24 hours. The flagship cryptocurrency is trading at $66,650 with a market capitalization of $1.31 trillion at the time of writing. 

BTC price – July 23 | Source: Trading View

Notably, spot Ethereum (ETH) ETFs in the U.S. are also expected to start trading today after getting the green light from the U.S. SEC. So far, the regulator approved the ETF applications from BlackRock, Fidelity, VanEck, 21Shares and Bitwise, to name a few.

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