Aug 20
Ethereum ETFs continue to struggle compared to Bitcoin ETFs, with large outflows causing Ethereum to underperform relative to Bitcoin. While new Ethereum ETFs like BlackRock’s iShares Ethereum Trust have seen some positive inflows, established products like Grayscale’s Ethereum Trust (ETHE) have faced large outflows, exacerbated by aggressive selling from major market makers like Jump Trading. This has resulted in a 40% drop in Ethereum prices as of early August, with the ETH/BTC ratio falling to its lowest level in over 1,200 days.
In contrast, Bitcoin ETFs have shown resilience, with continued inflows and more stable price performance. Despite challenges such as oversupply, market sentiment towards Bitcoin remains strong. Bitcoin is still expected to follow its previous halving year trajectory, and we expect a very bullish fourth quarter. Based on historical data, either the Q3 lows have already occurred, or we have one last leg of decline to find a bottom for Bitcoin.
With the Ethereum ETF facing challenges in terms of performance and outflows, the coming months will be a key factor in determining whether it can recover and attract continued investor interest. Key factors such as the macroeconomic environment and potential Fed rate cuts will significantly affect future ETF fund flows and market dynamics, affecting the market performance of Ethereum and Bitcoin.
