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Ethereum ETFs Face Largest Outflows Since July
The post Ethereum ETFs Face Largest Outflows Since July appeared on BitcoinEthereumNews.com. Ether (ETH) exchange-traded funds (ETFs) have witnessed their largest net outflows since July, with over $79 million withdrawn on Monday, signaling reduced institutional interest in the second-largest cryptocurrency by market cap. This recent outflow is the highest since July 29, when ETH ETFs saw a $98 million exit, marking the fourth-largest outflow since their debut on July 23, according to data from SoSoValue. Grayscale’s ETHE product accounted for nearly all of Monday’s outflows, while Bitwise’s ETHW reported a small inflow of $1.3 million. Other ETH ETFs remained largely unchanged, showing no notable inflows or outflows. Despite a recent rally in the crypto market, spurred by Federal Reserve rate cuts that lifted ether prices by 11%, Ethereum ETFs experienced substantial outflows. This disconnect suggests that investors remain skeptical about Ethereum’s long-term growth potential. A closely monitored ratio comparing ether’s strength against bitcoin has dropped to its lowest level since April 2021, signaling that the market favors bitcoin’s perceived stability over the higher-risk, higher-reward potential of ether. Peter Chung, head of research at Presto Labs, noted that Ethereum’s “world computer” narrative doesn’t resonate with traditional finance (TradFi) investors as much as bitcoin’s “digital gold” concept. According to CoinDesk, he explained that bitcoin’s role as a hedge against inflation is widely understood, making it easier for TradFi investors to adopt. In contrast, Ethereum’s complex technology-based appeal may not be as easily embraced. Chung added that even if TradFi investors warm to ETH, they may hesitate to add it to their portfolios after already investing in bitcoin. The incremental diversification benefits of including a second digital asset, he said, are minimal compared to their first bitcoin exposure. Investor Confidence Wanes as Ethereum ETF Outflows Surge Despite Price Rally Bitcoin reached new all-time highs in March in U.S. dollars, only to drop 20%, while ether…
The post Ethereum ETFs Face Largest Outflows Since July appeared on BitcoinEthereumNews.com.
Ether (ETH) exchange-traded funds (ETFs) have witnessed their largest net outflows since July, with over $79 million withdrawn on Monday, signaling reduced institutional interest in the second-largest cryptocurrency by market cap. This recent outflow is the highest since July 29, when ETH ETFs saw a $98 million exit, marking the fourth-largest outflow since their debut on July 23, according to data from SoSoValue. Grayscale’s ETHE product accounted for nearly all of Monday’s outflows, while Bitwise’s ETHW reported a small inflow of $1.3 million. Other ETH ETFs remained largely unchanged, showing no notable inflows or outflows. Despite a recent rally in the crypto market, spurred by Federal Reserve rate cuts that lifted ether prices by 11%, Ethereum ETFs experienced substantial outflows. This disconnect suggests that investors remain skeptical about Ethereum’s long-term growth potential. A closely monitored ratio comparing ether’s strength against bitcoin has dropped to its lowest level since April 2021, signaling that the market favors bitcoin’s perceived stability over the higher-risk, higher-reward potential of ether. Peter Chung, head of research at Presto Labs, noted that Ethereum’s “world computer” narrative doesn’t resonate with traditional finance (TradFi) investors as much as bitcoin’s “digital gold” concept. According to CoinDesk, he explained that bitcoin’s role as a hedge against inflation is widely understood, making it easier for TradFi investors to adopt. In contrast, Ethereum’s complex technology-based appeal may not be as easily embraced. Chung added that even if TradFi investors warm to ETH, they may hesitate to add it to their portfolios after already investing in bitcoin. The incremental diversification benefits of including a second digital asset, he said, are minimal compared to their first bitcoin exposure. Investor Confidence Wanes as Ethereum ETF Outflows Surge Despite Price Rally Bitcoin reached new all-time highs in March in U.S. dollars, only to drop 20%, while ether…
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