Ethereum Futures ETFs Boost Institutional Interest in ETH
Despite a prolonged bear market for cryptocurrencies, the recent approvals and launches of several Ether Futures ETFs have sparked renewed interest from institutional investors in Ethereum (ETH), the second-largest cryptocurrency by market cap.
Six Ether Futures ETFs Begin Trading
As of October 2, six Ether Futures financial products have officially started trading. These include the BitWise Ethereum Strategy ETF (AETH), Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), ProShares Ether Strategy ETF (EETH), ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE), Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), and VanEck Ethereum Strategy ETF (EFUT). Each product has its own net expense ratio.
Institutional Inflow of $13 Million in Ethereum Products
According to James Butterfill, Head of Research at CoinShares Co., there has been an institutional inflow of $13 million in Ethereum products as of October 4. This marks the first net-positive week in seven weeks. However, Butterfill noted that this inflow is significantly lower compared to the $200 million influx of institutional capital for Bitcoin during the launch of the Bitcoin Futures ETF by ProShares in 2021. The difference can be attributed to the current bearish market cycle as opposed to the bullish market in 2021.
Following the launch of various futures based Ethereum ETF launches in the US, we have seen US$13m of inflows so far this week, breaking a 7 week run of outflows.
Hot Take: Ether Futures ETFs Revive Institutional Interest in Ethereum
The recent approvals and launches of Ether Futures ETFs have breathed new life into institutional investors’ interest in Ethereum. Despite the bearish market conditions, these financial products have attracted an inflow of $13 million in Ethereum products, marking a positive turn after seven weeks of outflows. While the inflow is not comparable to Bitcoin’s previous institutional capital influx, it indicates a growing recognition of Ethereum’s potential among institutional investors. As the crypto market continues to evolve, Ether Futures ETFs could play a significant role in driving further adoption and investment in Ethereum.
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