An end-of-year ETH ETF check-in

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Yesterday, US Spot ether Products celebrated their five-month anniversary. 

However, net inflows that were consistent and substantial only came after the presidential election. The first thing to do is look at monthly flows:  

MonthlyNet Flows
August 23-31484,4 Million Dollars
August6 Million Dollars
The September issue of the newspaper is a good time to start planning.46 Million Dollars
SeptemberPlus $43 Million
OctoberMore than $1 Billion
The dates of December 1-20 are:Plus $1.8 billion

Grayscale’s Ethereum Trust, which is more expensive than other ETFs, experienced a massive outflow of funds in the days immediately following its conversion. Inflows from other funds could not offset these. 

Three months later, the flow was essentially flat. Industry watchers attributed this in part to the need for more education about ETH — an asset with a value prop more difficult to grasp than BTC.

Donald Trump’s win in the presidential election has fueled a crypto-market frenzy. ETH’s price has not reached the new record high levels that bitcoin has. 

CoinShares research associate Luke Nolan previously told me he’s eyeing February or March for ETH to hit a new high — as long as ether ETF flows remain strong. 

BTC attracted more attention among institutions due to the easier narrative of digital gold ($36 billion in net flows for Bitcoin ETFs vs. $2 billion for ETH). 

Nolan also added that ETH is facing competition from layer-1s such as solana. A number of fund groups proposed ETFs to hold SOL.  

“Ethereum developers have taken a long-term view as to improving the protocol whilst Solana has very much focused on capturing attention and demand now,” Nolan added. “They are both valid approaches that each attend to their own use cases and niches.”

See also  On Tuesday, 23 July, the US stock exchanges will begin listing ETFs that hold cryptocurrencies.

Keeping an eye on crypto ETF flows will help us understand investor sentiment toward each asset — whether it be BTC, ETH or others that could soon make their way into an ETF wrapper.

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leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

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