Ethereum exchange-traded funds (ETFs) experienced their largest outflows since July 2024, with $79.2 million exiting the market on Monday, according to data from SoSoValue.
Despite a highly-anticipated debut and strong start for Ethereum ETFs in July 2024, these crypto-based funds have yet to maintain institutional interest. Data from crypto ETF tracker SoSoValue reveals that Ethereum ETFs suffered a daily net outflow of $79.2 million on September 23. A closer look indicates that Grayscale’s Ethereum Trust (ETHE) was primarily responsible, with $80.6 million leaving the fund, pushing its cumulative net total outflow to $2.85 billion. Conversely, Bitwise’s ETHW reported net inflows of $1.3 million, increasing its cumulative net total inflows to $320.3 million.
The recent exodus is the fourth-largest in value since Ethereum ETFs were introduced on July 23, 2024. Currently, the total net assets (TNA) of Ethereum ETFs amount to $7.2 billion, significantly lower than the $57.9 billion for Bitcoin ETFs. This persistent underperformance compared to Bitcoin ETFs raises doubts about Ethereum’s future price potential. The ETH/BTC trading pair, now at levels last seen in April 2021, shows Ethereum has surrendered all its gains against Bitcoin accumulated over the past three years.
This disappointing performance of ETH against BTC aligns with Bitcoin reaching a new all-time-high (ATH) of $73,737 in March 2024, while Ethereum has yet to surpass its ATH of $4,878 recorded in November 2021. Ethereum ETFs may face further challenges as speculation grows about potential ETFs for other cryptocurrencies like Ripple’s XRP. Grayscale recently unveiled the first XRP trust in the U.S., hinting at the eventual launch of an XRP ETF.
Despite these challenges, optimism remains among digital asset analysts regarding Ethereum’s prospects. Near the launch of Ethereum ETFs, research firm ASXN predicted the funds could attract monthly inflows ranging from $800 million to $1.2 billion. Similarly, Matt Hougan from cryptocurrency exchange Bitwise described Ethereum as the “Microsoft of blockchains,” expressing confidence in the leading smart contract blockchain protocol. Hougan also suggested a potential trend reversal to the upside in Q4 2024. At the time of writing, Ethereum trades at $2,610, down 1.7% in the last 24 hours.
