Cryptocurrency analyst Leon Waidmann, Onchain Foundation's Head of Research, tracked the liquidity dynamics in Bitcoin- and Ethereum-based investment products of Grayscale since the moment of conversion to spot ETFs. So far, Ethereum (ETH) demonstrates better potential.
Grayscale outflows: ETH-based product looks better, analyst says
Ethereum (ETH) is outperforming Bitcoin (BTC) in terms of ETF outflows over time based on the first 50 days of observation, researcher Leon Waidmann says. He tracked Grayscale's investment products since the moment of conversion of OTC trusts to spot ETFs.
#Ethereum is outperforming #Bitcoin in terms of ETF outflows over time â ETH (green) now lower than GBTC (blue) in the same number of days â extremly bullish!đIf this holds, much more upside for #ETH ahead!đ pic.twitter.com/l7XAVvdSqS
â Leon Waidmann | Onchain Insightsđ (@LeonWaidmann) September 27, 2024
Simply put, the Ethereum-based product is losing liquidity way slower compared to its BTC-based analog. As such, Waidmann foresees a larger upside for the second cryptocurrency if this status quo holds.
Bitcoin spot ETFs launched in the U.S. Jan. 11, 2024, while the Ethereum spot ETF went live July 23. Grayscale, a blue-chip asset manager and operator of the largest OTC-traded crypto-based trusts, converted its corresponding products into ETFs.
As covered by U.Today previously, Ethereum (ETH) demonstrates pale performance in pair with Bitcoin (BTC) in recent years.
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On Sept. 15, 2024, ETH/BTC rates dropped below 0.04 for the first time in three and a half years. ETH/BTC lost over 55% since Ethereum activated the Merge upgrade replacing proof of work with proof of stake.
Bitcoin ETFs inflow metrics positive for seven days in row
As cryptocurrency markets experience cautious optimism, Bitcoin-based ETFs register positive inflows for seven days running.
As per CoinGlass data, in the last week, spot Bitcoin ETFs in the U.S. accumulated over $1.35 billion in AUM. The last outflow was registered Sept. 18.
Yesterday's session was the most productive for Bitcoin ETFs since mid-July with almost $0.5 billion added in one day. ARK Investments is responsible for over $200 million in this sum.
Ethereum (ETH), by contrast, is sending mixed signals, with five "positive" and two "negative" days in the last week. The net inflow equals $93.2 million across all publicly traded ETFs on spot Ether.
