Spot Ethereum ETFs in the US are Gaining Strength! BlackRock’s ETHA Fund Surpasses $1 Billion!
- BlackRock’s spot Ethereum ETF, ETHA fund, has surpassed $1 billion.
- Fidelity’s FETH is now the second-largest spot Ethereum fund.
- Grayscale is facing net losses due to significant exits.
Spot Ethereum ETFs in the US initially faced a more challenging process compared to spot Bitcoin ETFs. However, recent figures indicate a strong fourth quarter for these funds.
Subheadings:
Cash Inflows into Spot Ethereum ETFs Increasing
Grayscale Facing Net Losses Due to Large Exits
Derivative-Based ETFs Expected to Shake the Market
Cash Inflows into Spot Ethereum ETFs Increasing
ETF Store President Nate Geraci highlighted that BlackRock’s iShares ETHA fund crossed the $1 billion asset mark last week. ETHA ranked among the top 20% of best-performing funds. Geraci commented, “BlackRock’s fund stands out, and ETHA is in the top 20%.”
Since its launch at the end of July, ETHA attracted $95.5 million in net inflows just last week. Fidelity’s FETH fund came in second with $64.8 million in net inflows.
With $478.5 million in assets, Fidelity’s FETH fund has become the second-largest spot Ethereum fund in the US, compared to Bitwise’s ETHW fund.
Grayscale Facing Net Losses Due to Large Exits
Grayscale recorded a net outflow of $2.89 billion, leading to a total net loss of $522.6 million across all funds, resulting in overall losses in the sector.
Derivative-Based ETFs Expected to Shake the Market
Despite the strong performance of Bitcoin and Ethereum ETFs, derivative-based products continue to dominate discussions. BlackRock’s IBIT fund received approval from the SEC for spot Bitcoin ETF options. Commenting on the development, Michael Saylor said, “This will accelerate institutional adoption of Bitcoin.”
Senior Bloomberg ETF analyst Eric Balchunas remarked that this development is a major win for spot Bitcoin ETFs, boosting liquidity. “This is a big win for spot Bitcoin ETFs,” he said.
Additionally, recently approved leveraged funds by the SEC provide long exposure to BTC via MSTR, with these funds holding $429 million in assets, placing them in the top 20% of 2024 ETFs.
In conclusion, while spot Ethereum ETFs are showing strong growth, derivative-based products are expected to have significant impacts on the market. Despite Grayscale’s major exits disrupting the balance, major players like BlackRock and Fidelity are sending positive signals.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks. It is important to conduct their own research before making any investment decisions.
