Ether ETFs might have missed their golden moment. Here’s the latest cryptocurrency trading news.
Ether ETFs could have seen much better success had they hit the market alongside Bitcoin ETFs in January, according to Bobby Zagotta, Bitstamp’s CEO for the Americas and global commercial chief.
Speaking at TOKEN2049, Zagotta highlighted how the underperformance of Ether ETFs isn’t entirely surprising, considering the current state of the market.
Crypto is behaving like any other risk asset right now, which is a testament to the maturity of this market versus a year ago, two years ago even.”
Bitcoin ETFs, which launched on January 10, 2024, have racked up a hefty $17.5 billion in net inflows over eight months, according to CoinGlass. Ether ETFs, on the other hand, hit the scene seven months later in July and have struggled, with just over $600 million in net outflows within two months.
Zagotta believes Ether ETFs simply debuted at the wrong time. According to him, people are in a holding pattern, waiting it out. With election uncertainty, U.S. regulatory hurdles, and a generally flat market for risk assets, timing wasn’t in their favor.
Had Ether ETFs launched back in January alongside Bitcoin’s debut, he feels the outcome could have been quite different.
Over 38 trading days, less than a third of the days recorded positive net inflows for Ether ETFs, with Grayscale’s Ethereum Trust continuing to bleed and other ETFs underperforming, as Farside Investors data shows.
Zagotta acknowledged that Ethereum is facing fiercer competition than ever from rising challengers like Solana, which are gaining significant momentum. While Ethereum still dominates in terms of applications, volume, and price, “the competition is heating up like never before.”
Yet, he’s cautiously optimistic about a potential turnaround by year’s end, forecasting “a moment of clarity” on the horizon as elections, interest rates, and regulatory issues in the U.S. come into sharper focus.
Also Read: In A Historical Move, Nansen Unveils First-Ever Ether ETF Analytics Dashboard
The fourth quarter could see more action, with some real movement in both Ether and altcoins. While some, like former Wall Street trader Nick Forster, are less bullish on Ether hitting new all-time highs by 2024’s end, there’s still hope for a rally in the crypto space as optimism builds around a potential breakout in the altcoin market.
