The recent launch of spot Ethereum ETFs on July 23, 2024, has not met market expectations, with reported outflows totaling $152.3 million shortly after their debut. This performance contrasts sharply with the earlier success of Bitcoin ETFs, which attracted significant investments shortly after their introduction.
Overview of Ethereum ETFs:
Nine spot Ethereum ETFs began trading, including offerings from major financial institutions like VanEck and Fidelity. These ETFs are structured as grantor trusts, meaning they directly hold ether, the cryptocurrency underpinning the Ethereum blockchain. Unlike futures-based ETFs, which can suffer from performance drag due to the costs associated with rolling futures contracts, spot ETFs provide more direct exposure to the underlying asset.