On Tuesday, Ethereum spot exchange-traded funds (ETFs) registered a significant positive performance for the first time in nearly two months. The crypto-based investment products have seen sluggish performance throughout September and have failed to impress investors amid the market pump.
Recent Positive Performance of Ethereum ETFs
Last week, spot Ethereum (ETH) ETFs experienced their sixth consecutive week of negative net flows, with outflows amounting to $26.26 million. While Bitcoin (BTC) spot ETFs maintained a positive streak with their second week of inflows in a row, CoinShares’ weekly report highlighted that products based on Ethereum remained “outliers.”
In the past thirty days, investment products have been disappointing due to large outflows from Grayscale Ethereum Trust (ETHE) and insufficient activity from newly issued ETFs. According to Bitcoinist, there were no inflows or outflows across all issuers on August 30 and September 2, a scenario not seen since the launch of US spot crypto-based ETFs in January. Additionally, the trading volume of spot ETH ETFs was comparable to pre-launch levels, accounting for only 15% of the volume registered during their launch week in the US.
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This disappointing performance continued at the start of this week. ETH-based products had one of their worst days since their launch in late July, with a net outflow of $79.3 million on Monday. This marked Ethereum ETFs’ fifth-largest negative net flow day since their inception and their worst-performing day since July 31. Most funds saw no activity, except for ETHW’s modest $1.3 million inflows, while ETHE’s outflows were led by $80.6 million.
Recovery and Positive Turnaround
Despite the rough start, US Ethereum spot ETFs recorded one of their largest net flows on Tuesday, but in the opposite direction. ETH ETFs recovered from the massive Monday outflows, registering $62 million in inflows on the second day of the week. Leading the positive flows was BlackRock’s ETHA with $59.3 million, followed by VanEck’s ETHV and Invesco’s QETH with $1.9 and $1.3 million, respectively. There were no outflows among all issuers, including Grayscale’s ETHE, marking their third-best-performing day since July. Additionally, it became the best day for spot ETH ETFs and ETHA since August 6.
SEC Delays Decision on ETH ETFs Options
On Tuesday, the US Securities and Exchange Commission (SEC) announced that it had extended the deadline for its decision on the Nasdaq International Securities Exchange (ISE) proposed rule change to list and trade options on BlackRock’s ETHA. Similarly, the SEC delayed its decision on NYSE American LCC’s proposed rule change to trade and list options on Bitwise’s ETHW and Grayscale’s ETHE and Grayscale’s Mini Trust (ETH).
The deadlines have been extended to mid-November, with Nasdaq ISE’s ruling scheduled for November 10 and NYSE American LCC’s date set for November 11. This decision follows the recent approval of options trading for BlackRock’s iShares Bitcoin Trust (IBIT) on Nasdaq. Bloomberg analyst Eric Balchunas called the approval a “huge win” for spot BTC ETFs, considering it would attract more investors and bring in more liquidity. A similar development for spot Ethereum ETFs could potentially enhance the appeal of crypto-based investment products for larger investors.
As of the latest update, Ethereum is trading at $2,625. The market is closely watching how these developments will shape the future of Ethereum ETFs and their overall impact on the cryptocurrency market.
