Spot Ethereum in the US $2,318 Launch of ETFs, spot Bitcoin 
$60,073 It has not seen the expected interest compared to its ETF counterparts. While Ethereum ETFs have lagged behind in institutional adoption, Bitstamp Americas CEO and global head of trading Bobby Zagotta believes that a January launch would have been more beneficial.
Impact of Timing and Market Conditions
Speaking at the ongoing TOKEN2049 event in Singapore, Zagotta stated that current market conditions have negatively affected the performance of spot Ethereum ETFs. Stating that cryptocurrencies act as risky assets due to macro uncertainty, he said, “I think they did not live up to expectations, but I attribute this to timing.”
Zagotta added that this is an indication that the market is more mature than last year or two years ago, stressing that investors are waiting due to uncertainties.
Comparing Bitcoin and Ethereum ETFs
Spot Bitcoin ETFs launched in early January 2024 and attracted net inflows of $17.5 billion in eight months. In comparison, spot Ethereum ETFs, which launched in July, saw net outflows of over $600 million in two months.
“Ethereum ETFs have been launched at a challenging time for risk assets. People are holding off due to election uncertainty, regulatory issues in the US, and sociopolitical factors,” Zagotta said in his assessment.
Zagotta said he thinks spot Ethereum ETFs could have performed better if they launched at the same time as Bitcoin ETFs.
Ethereum ETFs Continue to Struggle
Ethereum price has been trading sideways below the $2,500 resistance, which has kept institutional demand low, and this has also kept interest in spot Ethereum ETFs low since launch.
Starting in early September 2024, spot Ethereum ETFs have seen steady outflows. On Wednesday, $15.1 million in outflows came from spot Ether ETFs, with Grayscale’s ETHE fund accounting for the majority of those outflows. “Ethereum is facing more challenges now than ever due to other alternatives gaining significant traction,” Zagotta added.
Spot Ethereum ETFs are underperforming due to timing and market uncertainties. Investor caution and economic factors are holding back interest. Demand for Ethereum ETFs could revive in the future as market conditions improve.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
