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Breaking News: XRP Price Predictions: AI Forecasts $4.40 By March 2026, Analysts Target Up To $6
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Breaking News: XRP Price Predictions: AI Forecasts $4.40 By March 2026, Analysts Target Up To $6

Ethereum ETFs See Largest Outflows Since July: Is Waning Institutional Demand Hurting ETH?

Ash Tiwari
Ash Tiwari
Last Updated: September 25, 2024 3:30 am
3 mins read
ethereum

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Ethereum (ETH) exchange-traded funds (ETFs) posted the largest outflows since July 2024, with $79.2 million leaving the market on Monday, according to data from SoSoValue.

Ethereum ETFs Continue To Underperform

Despite the highly-anticipated and strong start for Ethereum ETFs in July 2024, the latest crypto-based ETFs have, thus far, failed to sustain institutional interest. The latest data from crypto ETF tracker SoSoValue shows that ETH ETFs witnessed a daily total net outflow of $79.2 million on September 23.

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Upon closer inspection, it appears that the bulk of the outflows originated from Grayscale’s Ethereum Trust (ETHE), which saw $80.6 million exiting the fund, bringing its cumulative net total outflow to $2.85 billion. In contrast, Bitwise’s ETHW posted net inflows of $1.3 million, propelling its cumulative net total inflows to $320.3 million.

It’s worth noting that the latest exodus of funds from Ethereum ETFs is the fourth-largest in terms of value since their inception on July 23, 2024. The total net assets (TNA) of Ethereum ETFs stand at $7.2 billion, compared to $57.9 billion for Bitcoin (BTC) ETFs.

The continued underperformance of Ethereum ETFs relative to Bitcoin ETFs does not inspire much confidence in ETH’s future price potential. The ETH/BTC trading pair provides clarity, as the ratio is currently trading at levels it last witnessed way back in April 2021. ETH has erased all the gains against BTC it recorded over the past three years.

ETHBTC
The ETH/BTC trading pair is back to levels last seen in 2021 | Source: ETHBTC on TradingView.com

The recent subpar performance of ETH against BTC isn’t surprising since the latter recorded a new all-time-high (ATH) value of $73,737 in March 2024, while the former has yet to breach its ATH of $4,878 recorded in November 2021.

Challenges may lie ahead for ETH ETFs as speculation grows about the potential launch of ETFs for competing cryptocurrencies, such as Ripple’s XRP. Grayscale recently unveiled the first XRP trust in the U.S., paving the way for a future potential XRP ETF.

Analysts Confident About Ethereum’s Comeback

Ethereum’s challenges have not dampened the optimism several digital assets analysts shared toward the second-largest cryptocurrency by market cap. Near the launch of Ethereum ETFs, research firm ASXN predicted that the funds could attract monthly inflows ranging from $800 million to $1.2 billion.

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Ethereum Poised For A Comeback Following Interest Rate Cut: Steno Research

1 year ago

Similarly, cryptocurrency exchange Bitwise’s Matt Hougan recently dubbed Ethereum the “Microsoft of blockchains,” indicating confidence in the leading smart contract blockchain protocol. Hougan added that ETH could see a trend reversal to the upside in Q4 2024. ETH trades at $2,610 at press time, down 1.7% in the last 24 hours.

ethereum
ETH trades at $2,610 on the weekly chart | Source: ETHUSDT on TradingView.com
Featured image from Unsplash, Charts from Tradingview.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

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Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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