Ethereum ETFs See Best Day Since August
Ethereum spot ETFs saw their best performance since August, recovering from weeks of losses with $62 million in inflows on Tuesday.
On Tuesday, Ethereum spot ETFs saw their best performance since early August, marking a significant recovery after weeks of underwhelming results. The crypto-based investment products had a tough September, struggling to impress investors despite positive market movements.
Last week, Ethereum ETFs experienced their sixth consecutive week of negative flows, with $26.26 million in outflows. While Bitcoin ETFs continued to attract inflows, Ethereum-based products remained under pressure. In the past month, the outflows from Grayscale Ethereum Trust (ETHE), along with low activity in the new ETFs, contributed to their poor performance. The situation was so dire that between August 30 and September 2, no inflows or outflows were recorded across all Ethereum ETFs, a rare occurrence since the launch of US spot crypto ETFs in January.
Trading volumes for Ethereum ETFs have also been disappointing. The volume has dropped to just 15% of what was seen during their launch week, and the downward trend continued into this week. Monday saw a massive net outflow of $79.3 million, one of the worst days since their launch. This marked the fifth-largest negative net flow day for these products, with ETHE leading the outflows, accounting for $80.6 million.
Despite the negative start to the week, there was a sharp turnaround on Tuesday. According to Mads Eberhardt, a senior analyst at Steno Research, Ethereum spot ETFs recorded one of their largest positive net flows in months, with $62 million in inflows. BlackRock's ETHA led the recovery, bringing in $59.3 million, while VanEck's ETHV and Invesco's QETH added $1.9 million and $1.3 million, respectively. No outflows were recorded for any of the issuers, including Grayscale’s ETHE, making it the third-best performing day for Ethereum ETFs since their launch. It was also the best day for ETHA since August 6.
In another development, the US Securities and Exchange Commission (SEC) delayed its decision on options trading for Ethereum ETFs. The SEC extended the deadline for ruling on proposals from Nasdaq International Securities Exchange (ISE) and NYSE American LCC, which are seeking approval to list and trade options on BlackRock’s ETHA, Bitwise’s ETHW, and Grayscale’s ETHE.
The new deadlines are set for mid-November, with Nasdaq ISE's ruling expected on November 10, and NYSE American's on November 11. This follows the SEC’s recent approval of options trading for BlackRock’s iShares Bitcoin Trust (IBIT), a move that Bloomberg analyst Eric Balchunas hailed as a "huge win" for Bitcoin ETFs, expected to attract more investors and liquidity.
A similar approval for Ethereum ETFs could increase their attractiveness to institutional investors, potentially improving their performance in the months ahead.
