On Tuesday, ethereum exchange-traded funds (ETFs) posted a significant positive return for the first time in nearly two months. Cryptocurrency-based investment products have been performing sluggishly throughout September and have failed to impress investors amid the market boom.
ethereum ETFs post their best day since August
Last week, ethereum (eth) spot ETFs recorded their sixth consecutive week of negative net flows, with $26.26 million in outflows. While bitcoin (btc) spot ETFs continued the positive streak with their second consecutive week of inflows, CoinShares’ weekly report noted that products based on the second-largest cryptocurrency remained “outliers.”
Over the past thirty days, investment products have been disappointing due to continued large outflows from Grayscale ethereum Trust (ETHE) and insufficient activity from newly issued ETFs.
As Bitcoinist reported, investment products saw no inflows or outflows across all issuers on August 30 and September 2, which has not been seen since the launch of US spot cryptocurrency-based ETFs in January.
Furthermore, trading volume for spot eth ETFs was comparable to pre-launch, accounting for just 15% of the volume recorded in its launch week in the US.
The disappointing performance continued at the start of this week. eth-based products had one of their worst days since launching in late July, with a net outflow of $79.3 million on Monday.
<img data-recalc-dims="1" decoding="async" class="size-large wp-image-325565 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/Ethereum-Spot-ETFs-Post-Best-Performance-Since-August-6.png" alt="ethereum” width=”571″ height=”660″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/09/Captura-de-Pantalla-2024-09-25-a-las-10.39.47-a.-m.png?w=672 672w, https://bitcoinist.com/wp-content/uploads/2024/09/Captura-de-Pantalla-2024-09-25-a-las-10.39.47-a.-m.png?w=363 363w, https://bitcoinist.com/wp-content/uploads/2024/09/Captura-de-Pantalla-2024-09-25-a-las-10.39.47-a.-m.png?w=571 571w” sizes=”(max-width: 571px) 100vw, 571px”/>
ethereum ETFs' performance in the last three weeks. Source: eth/" target="_blank" rel="noopener nofollow">Farside Investors
This marked the fifth-largest negative net flow day for ethereum ETFs since their inception and their worst-performing day since July 31. While most funds saw no activity, save for a modest $1.3 million in ETHW inflows, ETHE outflows were led by $80.6 million.
However, Mads Eberhardt, senior analyst at Steno Research, x.com/MadsEberhardt/status/1838852818687410593″ target=”_blank” rel=”noopener nofollow”>noted U.S. ethereum spot ETFs also recorded one of their largest net inflows on Tuesday, but in the opposite direction. eth ETFs recovered from Monday’s massive outflows, recording $62 million in inflows on the second day of the week.
Blackock’s ETHA led positive flows with $59.3 million, while VanEck’s ETHV and Invesco’s QETH saw a moderate $1.9 and $1.3 million, respectively. Funds also saw no outflows across all issuers, including Grayscale’s ETHE. This marks its third best-performing day since July. It also became the best day for spot eth ETFs and ETHA since August 6.
SEC delays decision on eth ETF options
On Tuesday, the U.S. Securities and Exchange Commission (SEC) revealed had extended the deadline for its decision on the Nasdaq International Securities Exchange (ISE)'s proposed rule change for listing and trading options on Blackrock's ETHA.
Similarly, the US regulator delayed its decision on NYSE American LCC's proposed rule change for trading and listing options on Bitwise's ETHW, Grayscale's ETHE, and Grayscale's Mini Trust (eth).
The deadlines have been extended until mid-November, with a decision by Nasdaq ISE scheduled for November 10 and that of NYSE American LCC on November 11. The decision follows the agency’s recent approval of options trading for BlackRock’s iShares bitcoin Trust (IBIT) on Nasdaq.
Bloomberg analyst Eric Balchunas called the approval a “big win” for btc spot ETFs, as he felt it would attract more investors and bring in more liquidity. A similar development for ethereum spot ETFs could potentially increase the appeal of cryptocurrency-based investment products to large investors.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="size-large wp-image-325564 aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/1727355992_766_Ethereum-Spot-ETFs-Post-Best-Performance-Since-August-6.png" alt="ethereum, eth, ETHUSDT ” width=”980″ height=”524″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/09/ETHUSDT_2024-09-25_08-14-19.png?w=1102 1102w, https://bitcoinist.com/wp-content/uploads/2024/09/ETHUSDT_2024-09-25_08-14-19.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/09/ETHUSDT_2024-09-25_08-14-19.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/09/ETHUSDT_2024-09-25_08-14-19.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/09/ETHUSDT_2024-09-25_08-14-19.png?w=750 750w” sizes=”(max-width: 980px) 100vw, 980px”/>
ethereum is trading at $2,625 in the weekly chart. Source: ETHUSDT on x/m11S48kd/" target="_blank" rel="noopener nofollow">TradingView
Featured image from Unsplash.com, chart from TradingView.com
