Bitrabo Editorial
On Tuesday, Ethereum spot exchange-traded funds (ETFs) achieved notable gains, marking their first positive movement in nearly two months. Throughout September, these crypto investments have struggled to attract investor interest amidst market fluctuations.
Ethereum ETFs Experience Strong Performance
Recently, spot Ethereum (ETH) ETFs faced their sixth consecutive week with negative net flows, resulting in outflows of $26.26 million. In contrast, Bitcoin (BTC) spot ETFs have enjoyed consistent inflows for the past two weeks. According to CoinShares’ weekly report, Ethereum ETFs have been considered “outliers” in this trend.
Over the past month, these investment products have performed poorly, largely due to significant outflows from the Grayscale Ethereum Trust (ETHE) and a lack of engagement from newly launched ETFs.
Reports from Bitrabo indicated that on August 30 and September 2, there were no inflows or outflows for any Ethereum ETF, a rarity since US spot crypto ETFs debuted in January.
Moreover, the trading volume for spot ETH ETFs has dwindled to just 15% of the volume seen during their launch week in the US.
The disappointment persisted as the week began, where ETH ETFs saw one of their worst days ever since launching in late July, with a staggering net outflow of $79.3 million on Monday.
This outflow represented the fifth-largest negative net flow day for Ethereum ETFs since their inception and marked their worst performance since July 31. While most funds remained inactive, ETHW did see small inflows of $1.3 million, but ETHE experienced the largest outflows, reaching $80.6 million.
Nevertheless, Mads Eberhardt, a senior analyst at Steno Research, highlighted that US Ethereum spot ETFs had a remarkable recovery on Tuesday, reversing Monday’s outflows with $62 million in inflows.
Blackrock’s ETHA led the positive trend with $59.3 million in inflows, while VanEck’s ETHV and Invesco’s QETH attracted modest inflows of $1.9 and $1.3 million, respectively. Notably, there were no outflows for any issuers, including Grayscale’s ETHE, making it their third best day since July and the best day for spot ETH ETFs and ETHA since August 6.
SEC Pushes Back ETH ETF Options Decision
On Tuesday, the US Securities and Exchange Commission (SEC) announced an extension for its decision on the Nasdaq International Securities Exchange’s proposed rule change to list and trade options on Blackrock’s ETHA.
The SEC also postponed its decision regarding NYSE American LLC’s proposed rule changes for trading and listing options on Bitwise’s ETHW and Grayscale’s ETHE and Mini Trust (ETH).
The new deadlines are set for mid-November, with the Nasdaq ISE’s ruling expected on November 10 and NYSE American LLC’s on November 11. This follows the SEC’s recent approval for options trading on BlackRock’s iShares Bitcoin Trust (IBIT) on Nasdaq.
Bloomberg analyst Eric Balchunas termed this approval a “significant win” for spot BTC ETFs, predicting it would attract more investors and enhance liquidity. A similar outcome for spot Ethereum ETFs could increase their attractiveness to larger investors.
