Last week saw Ethereum spot ETFs enter the financial markets a few months after approval by the US Securities and Exchange Commission.
The immediate results were disappointing, compared to the launch of Bitcoin ETFs earlier this year.
Comparison between Ethereum and Bitcoin ETFs:
As we mentioned earlier on the Arab Bitcoin platform, Ethereum ETFs collected $106 million in net inflows on their first day.
Despite large withdrawals from the Grayscale Fund (ETHE) amounting to approximately $500 million, flows into other funds, such as ETHA and ETHW, helped mitigate the negative impact.
However, the next three days saw a change in trend, as flows shifted to daily withdrawals of $133.3 million on July 24, $152.4 million on July 25, and $162.7 million on July 26.
This worrying trend has led to increased outflows, with the Grayscale (ETHE) fund alone losing $326.9 million, $346.2 million, and $356.3 million sequentially.
Despite the growing demand for some other products such as BlackRock's ETHA and Fidelity's FETH, these funds were unable to offset the large withdrawals from the ETHE fund.
Thus, the numbers show that after the first four days of trading a total amount of $341.8 million was withdrawn from Ethereum ETFs.
By contrast, Bitcoin ETFs saw much larger inflows in their first four days, reaching $650 million on day one, $203 million on day two, and $453.8 million on day four.
The third day alone saw $52.7 million in outflows, bringing the total net inflows to approximately $1.260 billion in just four days, highlighting the huge difference compared to Ethereum ETFs.
Impact on price performance:
Despite the clear difference in demand between the two largest cryptocurrencies, the price performance of the two digital currencies has been unexpected.
With more than $1,250 billion entering the Bitcoin ecosystem, the price of Bitcoin was expected to rise, but it rose from $45,000 to $49,000 before falling to $41,300 by the fourth day of the Bitcoin ETF’s trading.
On the other hand, Ethereum began with a price decline from $3,500 to $3,000 as a result of outflows, but it rebounded and is now close to $3,300.
Despite the large outflows, Ethereum fell only 6.5%, compared to Bitcoin's 16% decline despite the success of its ETFs in the early days.
These results highlight the difference between the performance of Ethereum and Bitcoin ETFs, and indicate that the market remains unstable for the digital asset.
