Translation: Vernacular Blockchain

"Why hasn't the Ethereum ETF performed better?"

This is a question I received at an event last week. Here are a few points I would like to share.

Among the 525 ETFs launched in 2024, 13 belong to the top 25 related to Bitcoin or Ethereum. Including the MSTR options strategy ETF, there are a total of 14. The top four ETFs are all spot Bitcoin. Of the seven crypto-related ETFs, five are. I call this masterpiece "No (Market) Demand."

First, how to judge success? iShares, Fidelity, and Bitwise's ETFs are all among the top 25 fastest-growing new ETFs this year.

I believe there are three factors that influenced their launch:

(1) Summer: For many investors, summer is a slow period. People will pay attention but will not invest too much in new projects.

(2) Market: Bull markets always attract more attention. The Bitcoin ETF was launched during a Bitcoin price increase, while the Ethereum ETF was launched in a sideways market.

(3) Following the Bitcoin ETF closely: For many traditional investors, after the Bitcoin ETF was launched, they needed some time to understand how to incorporate Bitcoin into their portfolios. Ethereum was launched while this issue was still unresolved, making it difficult to shift focus.

Nevertheless, the three ETFs mentioned earlier remain the fastest-growing this year.

The story of the Ethereum ETF has just begun.