Despite the highly anticipated launch of Ethereum ETFs in the United States, hopes of a significant boost to Ethereum price have remained unfulfilled as the cryptocurrency continues to underperform Bitcoin (BTC). But, is this a short term trend and is there a comeback around the corner?<\/p>\n
Bitcoin Outperforms Ethereum Despite Ether ETFs<\/strong><\/h2>\nIn a blog post on Monday, crypto research firm Kaiko analyzed this trend, highlighting what could have caused Ether\u2019s weakness<\/a>. Notably, last week marked the launch of six futures-based ETH ETFs on U.S. markets, following an earlier-than-expected approval by the U.S. Securities and Exchange Commission (SEC). However, these ETFs failed to generate significant trading volume or provide the anticipated boost to the overall crypto market.<\/p>\n<\/p>\n
According to Kaiko, among these newly launched ETFs by VanEck and ProShares, the two largest by trade volume struggled to achieve an average daily trade volume of just $0.5 million during their initial week of trading.<\/p>\n
In contrast, the first Bitcoin futures ETF, ProShares Bitcoin Strategy (BITO), attracted more than $1 billion in trade volume on its debut day. The firm attributes the dull response to launch of Ethereum ETFs<\/a> to the prevailing market conditions, marked by a September surge in risk-free rates driven by robust U.S. economic data and escalating macroeconomic uncertainties. These factors, it noted, have diminished interest in riskier assets such as cryptocurrencies.<\/p>\n<\/p>\n
Ethereum\u2019s underperformance compared to the broader crypto market has also been evident since \u201cthe Merge\u201d<\/a> with the ETH\/BTC price ratio and volume being on a downward trend over the past year.<\/p>\n<\/p>\n
\n\u201cETH\u2019s underperformance is likely due to the ongoing impact of the bear market, which historically has seen traders turn to BTC, the oldest and largest crypto asset,\u201d<\/em> Kaiko wrote.<\/p>\n<\/blockquote>\nAdditionally, despite the increase in open interest for ETH perpetual futures since early September, funding rates have also stayed neutral to negative, indicating a lack of clear market direction.<\/p>\n
Are Institutions Buying Ether ETFs?<\/strong><\/h2>\nHowever, Kaiko noted that even though ETH futures ETFs did not attract significant trading volume, they still provide a liquid, cost-efficient, and transparent way for investors to gain exposure to Ethereum. This could potentially alter institutional investors\u2019 perceptions of ETH, which currently remains strongly correlated with BTC, despite their conceptual differences.<\/p>\n
Meanwhile, ETH extended its losses<\/a> on Monday, after shedding approximately 7% over the past week to reach a trading price of $1,569. This contrasts BTC which was trading at $27,401 after losing\u00a0\u00a0 just 2.22% over the same period.<\/p>\n<\/p>\n
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According to Kaiko, among these newly launched ETFs by VanEck and ProShares, the two largest by trade volume struggled to achieve an average daily trade volume of just $0.5 million during their initial week of trading.<\/p>\n
In contrast, the first Bitcoin futures ETF, ProShares Bitcoin Strategy (BITO), attracted more than $1 billion in trade volume on its debut day. The firm attributes the dull response to launch of Ethereum ETFs<\/a> to the prevailing market conditions, marked by a September surge in risk-free rates driven by robust U.S. economic data and escalating macroeconomic uncertainties. These factors, it noted, have diminished interest in riskier assets such as cryptocurrencies.<\/p>\n <\/p>\n Ethereum\u2019s underperformance compared to the broader crypto market has also been evident since \u201cthe Merge\u201d<\/a> with the ETH\/BTC price ratio and volume being on a downward trend over the past year.<\/p>\n <\/p>\n \u201cETH\u2019s underperformance is likely due to the ongoing impact of the bear market, which historically has seen traders turn to BTC, the oldest and largest crypto asset,\u201d<\/em> Kaiko wrote.<\/p>\n<\/blockquote>\n Additionally, despite the increase in open interest for ETH perpetual futures since early September, funding rates have also stayed neutral to negative, indicating a lack of clear market direction.<\/p>\n However, Kaiko noted that even though ETH futures ETFs did not attract significant trading volume, they still provide a liquid, cost-efficient, and transparent way for investors to gain exposure to Ethereum. This could potentially alter institutional investors\u2019 perceptions of ETH, which currently remains strongly correlated with BTC, despite their conceptual differences.<\/p>\n Meanwhile, ETH extended its losses<\/a> on Monday, after shedding approximately 7% over the past week to reach a trading price of $1,569. This contrasts BTC which was trading at $27,401 after losing\u00a0\u00a0 just 2.22% over the same period.<\/p>\n <\/p>\n \u2713 Share:<\/p>\n <\/a><\/p>\n <!– <\/p>\n <\/p>\n <\/a><\/p><\/div>\n<\/p><\/div>\n\n
Are Institutions Buying Ether ETFs?<\/strong><\/h2>\n
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