On Tuesday, Ethereum spot exchange-traded funds (ETFs) experienced a notable positive shift for the first time in almost two months. Throughout September, these crypto-linked investment products had demonstrated a sluggish performance, failing to captivate investors during the market rally.
Ethereum ETFs Achieve Best Performance Since August
Last week, spot Ethereum (ETH) ETFs faced their sixth consecutive week of negative net flows, resulting in outflows totaling $26.26 million. Meanwhile, Bitcoin (BTC) spot ETFs maintained their positive momentum, recording inflows for the second consecutive week. According to CoinShares’ weekly report, products tied to the second-largest cryptocurrency remained as “outliers.”
In the past thirty days, these investment products showed disappointing results due to ongoing significant outflows from the Grayscale Ethereum Trust (ETHE) and limited activity from newly issued ETFs.
As highlighted by Bitcoinist, there were no inflows or outflows across all issuers on August 30 and September 2, an unusual occurrence since the debut of US spot crypto-based ETFs in January.
Furthermore, the trading volume of spot ETH ETFs was similar to levels seen prior to their launch, capturing only 15% of the volume recorded during their launch week in the US.
The disappointing trend continued at the start of this week, with ETH-based products experiencing one of their roughest days since their launch in late July, witnessing a net outflow of $79.3 million on Monday.
Ethereum ETFs' performance in the last three weeks. Source: Farside Investors
This incident marked the fifth largest negative net flow day since the inception of the Ethereum ETFs and their worst day since July 31. While most funds experienced inactivity, aside from ETHW’s modest inflows of $1.3 million, ETHE’s outflows were dominated by $80.6 million.
Nevertheless, Mads Eberhardt, a senior analyst at Steno Research, observed that US Ethereum spot ETFs recorded one of their largest net flows on Tuesday, but in the opposite direction. The ETH ETFs rebounded from the significant outflows on Monday, garnering $62 million in inflows on the following day.
BlackRock’s ETHA led the positive inflow with $59.3 million, while VanEck’s ETHV and Invesco’s QETH attracted minor inflows of $1.9 and $1.3 million, respectively. All issuers, including Grayscale’s ETHE, reported no outflows. This marks their third-best performance since July, and it became the best day for the spot ETH ETFs and ETHA since August 6.
SEC Postpones Decision on ETH ETFs Options
On Tuesday, the US Securities and Exchange Commission (SEC) announced that it would extend the deadline for its ruling on the Nasdaq International Securities Exchange (ISE) proposed rule change concerning the listing and trading of options on Blackrock’s ETHA.
Likewise, the US regulator postponed its decision on NYSE American LCC’s proposed rule change to list and trade options on Bitwise’s ETHW, Grayscale’s ETHE, and Grayscale’s Mini Trust (ETH).
Both deadlines are now pushed to mid-November, with Nasdaq ISE’s ruling set for November 10 and NYSE American LCC’s decision scheduled for November 11. This follows the agency’s recent approval of options trading for BlackRock’s iShares Bitcoin Trust (IBIT) on Nasdaq.
Bloomberg analyst Eric Balchunas described the approval as a “huge win” for spot BTC ETFs, suggesting that it would draw in more investors and enhance liquidity. A similar advancement for spot Ethereum ETFs could significantly increase their attractiveness to larger investors.
Ethereum is trading at $2,625 in the weekly chart. Source: ETHUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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