Despite launching in the midst of a booming pro-crypto market, spot ether ETFs are struggling to draw the kind of inflows seen by spot bitcoin ETFs. Initial data shows inflows into ether funds were about $1.6 billion in their first months, which, while respectable, pales in comparison to bitcoin's nearly $19 billion in the same timeframe. Analysts emphasize that ether’s market cap, only one-fourth that of bitcoin, is a more realistic benchmark for expected ETF demand.
Analysts explain that the historical context of these underperforming ether ETFs plays a significant role. They note that the performance looks worse when directly compared to the monumental inflows observed for bitcoin ETFs. For instance, Grayscale’s ETHE has overshadowed other ether funds with massive redemptions, which have undermined their overall asset accumulation. The lingering impact of this exodus continues to affect the broader ether ETF market.
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