The Current Situation of Ether ETFs
Spot ether (ETH) exchange-traded funds (ETFs) in the United States have been facing a challenging period, recording their 11th consecutive day of net outflows. Over this stretch, these funds have seen a staggering $358.1 million pulled out by investors, coinciding with a notable drop in ether’s price, which fell by nearly 7%.
Key Contributors to Outflows
On Tuesday, the BlackRock iShares Ethereum Trust ETF (ETHA) was at the forefront of these outflows, experiencing a decline of $12.9 million. Over the 11-day period, ETHA has lost a total of $137.6 million. Other significant players contributing to this trend include Fidelity’s FETH and Grayscale’s ETHE, which also experienced substantial withdrawals.
Current Holdings and Historical Context
Despite the recent outflows, spot ether ETFs currently manage approximately $7 billion in ether assets. Since their inception in July, they have recorded a cumulative net inflow of $2.45 billion, according to data from SoSoValue. This indicates that while there are short-term withdrawals, the long-term sentiment towards these investments may still be positive.
Ether Price Performance
The decline in ether’s value has been marked, with prices dropping from about $2,150 on March 8 to approximately $1,990 by Thursday. This represents a significant loss of roughly 40% in value year-to-date, raising concerns among investors about the volatility of digital currencies.
Contrasting Trends in Bitcoin ETFs
In a stark contrast to the ether ETFs, U.S. bitcoin (BTC) ETFs have enjoyed a positive trend, marking their fourth consecutive day of net inflows. Since January of last year, these bitcoin ETFs have amassed a remarkable cumulative net inflow of $35.8 billion, showcasing a robust demand for bitcoin amidst the current market fluctuations.
In summary, while ether ETFs are currently facing outflows and price depreciation, the broader market dynamics reveal a mixed sentiment, particularly when considering the performance of bitcoin ETFs.
