Ethereum exchange-traded funds (ETFs) posted a big positive performance on Tuesday for the first time in nearly two months. Cryptocurrency-based investment products have been sluggish throughout September and failed to impress investors amid a market slump.
Ethereum ETFs Have Best Day Since August
Last week, Ethereum (ETH) exchange-traded funds (ETFs) saw their sixth straight week of negative net inflows, with outflows of $26.26 million. While Bitcoin (BTC) ETFs continued their positive run with inflows for the second week in a row, Coinshares’ weekly report noted that products based on the second-largest cryptocurrency remained “extreme.”
Over the past 30 days, investment products have been disappointing due to continued large outflows from the Grayscale Ethereum Trust (ETHE) and insufficient activity from newly launched ETFs.
According to Bitcoinist, investment products saw no inflows or outflows across all issuers on August 30 and September 2, something we haven’t seen since the launch of cryptocurrency-based ETFs in the US in January.
Additionally, the trading volume of spot ETH ETFs was similar to that before their launch, accounting for just 15% of the volume recorded in the week of their launch in the United States.
The disappointing performance continued into the start of this week. ETH-based products saw one of their worst days since launching in late July, with net outflows of $79.3 million on Monday.
Ethereum ETFs' performance in the last three weeks. Source: Farside Investors
This marked the fifth-largest day of net negative inflows for Ethereum ETFs since their inception and their worst day since July 31. While most funds saw no activity, with the exception of a modest $1.3 million inflow of ETHW, ETHE led the way with $80.6 million inflows.
However, Mads Eberhardt, senior analyst at Steno Research, says: male US Ethereum ETFs also recorded one of the largest net inflows on Tuesday, but in the opposite direction. Ethereum ETFs recovered from Monday’s massive outflows, recording $62 million in inflows on the second day of the week.
Blackock’s ETHA led the positive inflows with $59.3 million, while VanEck’s ETHV and Invesco’s QETH saw moderate inflows of $1.9 million and $1.3 million, respectively. There were no outflows among all issuers, including Grayscale’s ETHE. This marks their third-best day since July. Additionally, it was the best day for the ETH ETF and ETHA since August 6.
SEC Postpones Decision on ETH ETF Options
On Tuesday, the U.S. Securities and Exchange Commission (SEC) announced open The Nasdaq International Stock Exchange (ISE) has extended the deadline for its decision on a proposed rule change for the listing and trading of options on BlackRock Inc.’s ETHA.
Similarly, the US regulator has postponed its decision on the proposed change by NYSE American LCC regarding the trading and listing of options on Bitwise’s ETHW, Grayscale’s ETHE, and Grayscale’s Mini Trust (ETH).
The deadlines have been extended to mid-November, with the Nasdaq ISE decision set for November 10 and the NYSE American LCC date set for November 11. The decision comes after the agency’s 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 bitcoin-based ETFs, saying it would attract more investors and bring in more liquidity. A similar development for Ethereum-based ETFs could potentially boost the appeal of cryptocurrency-based investment products for larger investors.
Ethereum is trading at $2,625 in the weekly chart. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com