According to ChainCatcher, Bitfinex released a report saying that Ethereum ETFs continue to struggle compared to Bitcoin ETFs, and large capital outflows have led to Ethereum's poor performance relative to Bitcoin. Although emerging Ethereum ETFs such as BlackRock's iShares Ethereum Trust have some positive inflows, established products such as Grayscale's Ethereum Trust (ETHE) have faced a large outflow, which has been exacerbated by aggressive selling by major market makers such as Jump Trading. This has led to a 40% drop in Ethereum prices as of early August, and the ETH/BTC ratio has fallen to its lowest level in more than 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 in Bitcoin remains strong. Bitcoin is still expected to follow the previous halving year trajectory, and we expect the fourth quarter to be very bullish. Based on historical data, either the lows in the third quarter have already occurred, or we have one last round of declines to find the bottom of Bitcoin.
With the Ethereum ETF facing challenges with performance and outflows, the coming months will be a key factor in determining whether it can recover and attract sustained investor interest. Key factors such as the macroeconomic environment and potential Fed interest rate cuts will significantly affect future ETF capital flows and market dynamics, affecting the market performance of Ethereum and Bitcoin.
