Informed Crypto News
Spot ether ETF flows were $0 yesterday, negative $548 million since launch
Headline, SPOT Ether ETF flows were $0 yesterday, negative $548 million since launch, published at 602 PM UTC, October 8, 2024 on Protos.com. Institutional Ethereum investment via ETFs reached a historic and dismal milestone yesterday, when for an entire day on Wall Street, zero net new US dollars flowed into SPOT Ether ETFs, known as daily total net flow, or simply flows in crypto parlance, this metric sums the total amount of money invested into SPOT Ether ETFs, inflows, against the total amount of money withdrawn, outflows, on a daily basis. The intention of the metric is to communicate how much effect the SPOT Ether ETFs, distinct from other investment vehicles like SPOT or derivative purchases, contribute to Ether's price on a day-to-day basis. Calculations are typically in US dollars, and take into account all purchase and sale transactions across the nine SPOT Ether ETFs, listed on US stock exchanges by sponsors - BlackRock, Fidelity, Bitwise, 21 shares, Franklin, Invesco Galaxy, Vanek, and Grayscale's two SPOT ETFs. Subheading Ether ETF flows have disappointed everyone Monday's figure of zero contrasts focused starkly with predictions from bullish investors who heralded SPOT Ether ETFs as the advent of institutional adoption. Market predictions included all-time highs of up to $15,000 per ETH. Today, ETH is trading around $2,400, half of its all-time high. In the first quarter following the launch of Bitcoin's SPOT ETFs, Bitcoin enjoyed over $12 billion of inflows. Ether, disappointingly, has actually posted net outflows since its SPOT ETFs debuted. Indeed, because Wall Street entities had ceded the nine SPOT Ether ETFs with $10.2 billion of capital for their debut, most of which came from Grayscale's Ether Trust, there was some money available to withdraw from these funds. Taking that opportunity, investors have withdrawn capital from SPOT Ether ETFs on a net basis since their US listings. Specifically, SPOT Ether ETFs have shed $548 million in net outflows since July 23. There are many reasons for investors making decisions about capital reallocation away from SPOT Ether ETFs. One salient contributor to poor performance, in addition to Ether underperforming Bitcoin, might be the lack of yield in SPOT Ether ETFs. Large holders of ETH may earn 3.3% in native yield by participating in Ethereum's proof of stake, while most Ether ETFs, in contrast, do not pay any yield and actually charge a management fee. This recording was AI-generated. Get more crypto news at protos.com