The US Spot Ethereum ETF has recorded a net inflow of USD 487 million over the past few days, but ETH has risen 2% amid a widespread market dip. ETH is $2,790, a 10% drop on the weekly charts, but has been well below its all-time high since November 2021. BlackRock ETFs continue to lead the inflow, but Grayscale’s ETHE is the largest with an AUM of USD 3.6 billion. There are currently over 40 Altcoin ETF filings, but analysts expect demand will remain shallow until market dynamics evolve.
The US Spot Ethereum Exchange-Traded Funds (ETFs) have seen net inflows increase over the past few days. Meanwhile, despite the overall market slump, ETH prices have risen.
Bitcoin and other major cryptocurrencies are in red, but ETH managed a 2% increase over the 24-hour time frame, but still falls 10% on the weekly chart.
As of trading at USD 2,790 (USD 4,439), Ether Trady received a huge discount of USD 4,891 (USD 7,783) for over three years since November 2021.
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US ether ETFs, which have historically degraded performance at least compared to their Bitcoin counterparts, have flourished at their apparent discount prices.
Over the past four days, net inflows have cut off USD 487 million (USD 775 million).
BlackRock continues to dominate the Crypto ETF space
Like Bitcoin ETFs, the largest fund, BlackRock Fund, continues to dominate. Etha accumulated US$276.2 million ($439.5 million) on Tuesday alone, marking a net spill streak that lasted almost seven weeks.
In fact, ETHA has only had three days of net spill since it began trading on July 23, 2024, totaling USD 141.8 million ($225.7 million).
Despite its massive profits, Grayscale’s Ethereum Trust (ETHE) remains the largest ETF, with a total of 3.6 billion US dollars (AUM) compared to Etha’s US dollars ($5.444 billion). There is an asset (AUM).
Grayscale’s Ethereum Mini Trust (ETH) has won a portion of its holdings from ETHE for a lower fee, taking third place at US$12.9 billion (AU $2.05 billion) in AUM, Fidelity’s Ethereum Fund The Ethereum Fund (FETH) is followed by the Fidelity Ethereum Fund (FETH) with a US$11.9 billion. ($1.89 billion).
Despite concerns about market demand, several Altcoin submissions
The growing popularity of these ETFs is part of why so many filings in Altcoin ETFs have arrived at regulatory desks.
According to Kaiko data, there are currently over 40 Altcoin ETFs, with Solana and XRP far surpassing their counterparts with a whopping 11 filings. Six of these filings are for Spot ETFs, but futures ETFs have four filings, each with one combo ETF.
Also, like basketball ETFs that include a variety of digital assets, there are three filings for each combination of Ethereum and Bitcoin ETFs.
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Several other altcoins are also pending applications for ETFs. However, it is unclear what the demand for these ETFs will be once approved for the transaction. According to Kaiko, it could be “shallow and concentrated in offshore venues.”
Furthermore, the universe of investable products is small and, like BTC and ETH, there is no capacity to grasp the basis between the spot and the future. All of these factors could limit future crypto-related ETF demand. The approval process may change, but market dynamics still need to keep up.
Silkworm