Ethereum ETF Show Promise Despite Grayscale Outflows: Bloomberg Analyst

Ethereum-based Exchange Traded Funds (ETFs) have recently made their debut on major stock exchanges. As these ETFs complete their first few days of trading, early data and expert analysis are providing insights into their performance and potential impact on the broader crypto investment landscape.

Mixed Performance Across Ethereum ETF Offerings & Prospects

Bloomberg’s senior ETF analyst Eric Balchunas has reported that while Ethereum ETFs are not performing as strongly as Bitcoin ETFs in offsetting Grayscale’s outflows, they are still showing healthy inflows and trading volumes.

The Grayscale Ether ETF (ETHE) has seen significant outflows, with over $346 million leaving the fund on Thursday alone. This has resulted in a total decrease of more than $1.5 billion in assets under management (AUM) for ETHE over the first three days, bringing its total AUM to $7.5 billion.

However, other spot Ethereum ETFs are showing positive momentum. BlackRock’s Ether ETF (ETHA) recorded inflows of $72.9 million, while Fidelity’s FETH saw $34.3 million in new investments. In a notable development, the Bitwise Ether ETF (ETHW) celebrated its listing on the New York Stock Exchange (NYSE) on Thursday, attracting $17 million in inflows.

These mixed results suggest that while the Ethereum ETF market is facing some challenges, particularly with Grayscale’s outflows, there are signs of growing interest and investment in other Ethereum-based ETF products as well as long term prospects.

Balchunas noted that the intensity of unlocking for Grayscale’s Ethereum ETF (ETHE) is expected to be less severe than previously anticipated. This comes as the spot Ethereum ETF market experiences its third day of trading.

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Ethereum Options Market Signals Optimism

In the broader Ethereum market, data from derivatives platform Deribit shows that a total of 499,811.00 Ethereum options are set to expire today with a notional value of $1.622 billion and a max pain point of $3,300.

The put-call ratio stands at 0.46, indicating a strong dominance of purchase (call) options over sell (put) options. This ratio highlights that traders prefer purchasing options instead of selling them, suggesting broader market optimism in the Ethereum ecosystem.

As the Ethereum ETF market continues to evolve, investors and analysts will be closely watching these trends to gauge the long-term viability and impact of these new investment products on the cryptocurrency market as a whole.

Ethereum price reached $3,265.99 as of today marking a 3.07% increase over the past 24 hours. The 24-hour trading volume for Ethereum has been substantial, amounting to $18 billion. Ethereum has been trading within a range of $3,275.82 to $3,176.13 during the past 24 hours, reflecting its volatile nature. Despite this volatility, the cryptocurrency’s live market cap stands at an impressive $392.6 billion.

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